ICAB welcomes Tk 2,000 minimum income tax

The Institute of Chartered Accountants of Bangladesh (ICAB) has welcomed the proposed minimum income tax of Tk 2,000 for individuals who do not even have taxable incomes.

The autonomous body thinks it would help expand the tax net and increase the number of tax return submissions.

The leaders of the ICAB made the statement in a press briefing at its headquarters in Dhaka while expressing their reaction on the proposed budget for 2023-24 fiscal year.

"The minimum tax is not new. It is already there," Md Humayun Kabir, chairman of ICAB's committee on taxation and corporate laws, said in the press briefing.

Currently, many people pay taxes on their interest earnings from bank deposits, he said.

Banks deduct the tax while crediting the interest income to the accounts of the depositors, Kabir added.

The depositors will be able show the withholding tax in their tax returns, which many do not do now, he said.

Kabir said businesses should not oppose the new rule as this will increase tax net.

The NBR introduced a provision in the income tax law making the submission of income tax return for persons in cases of 38 services, including obtaining and renewing of trade licences, applying for bank loans of over Tk 5 lakh, becoming a director of a bank, obtaining or maintaining credit card and obtaining and holding licence for arms and opening letters of credit.

At the event, Md Moniruzzaman, president of the ICAB, and Snehasish Barua, a partner at Snehasish Mahmud & Co, also spoke.