ICAB lauds proposed budget for FY2022-23

The Institute of Chartered Accountants of Bangladesh (ICAB) has lauded the proposed national budget for FY2022-23.

Finance Minister AHM Mustafa Kamal placed a Tk678,064 crore budget proposal for the next fiscal year (equivalent to GDP's 15.2%).

The organisation, in a press briefing on Saturday, congratulated the present government, led by Prime Minister Sheikh Hasina, on the announcement of 15th consecutive budget for FY23.

Addressing the media, ICAB President Md Shahadat Hossain noted that the proposed budget is business-friendly and will help Bangladesh to upgrade gradually to the position of a higher middle-income group.

Despite all the uncertainties around the globe, the allocation of Tk246,066 crore for development activities is very encouraging for a country like Bangladesh, he said adding that an additional budget in the infrastructure sector is a commendable step taken by the authorities.

The ICAB president emphasised expanding the tax net saying that it is very much necessary for improving the tax GDP ratio while advising the government to take further steps in this regard.

"We believe that the joint initiative of NBR and ICAB in implementing Document Verification System (DVS) will facilitate to achieve the targeted revenue. We also believe that this initiative will bring about transparency and accountability in the financial arena," he added. 

Md Shahadat said that tax reform may also improve the tax GDP ratio and increase revenue collection.

However, the he expressed concern that despite substantial inflationary pressure, the tax-free limit for individuals remained unchanged.

Besides, the imposition of capital gain tax from investment in government securities will increase the tax burden of the taxpayers, the ICAB president added.