Taxpayers are reimbursed directly to their bank account
To make it as easy as possible for taxpayers, the Income Tax Bill-2022 proposes to pay income tax refunds directly to their bank accounts through an automated system, said the chairman of the National Board of Revenue. (NBR), Abu Hena Md Rahmatul Muneem.
While sharing the details of the proposed law at a seminar on Sunday, the NBR chairman said various measures such as abolishing the discretion of tax officials on the ground will make the new law fully business-friendly.
The proposed law also includes international best practices, he added.
At the same time, some provisions have been added to the law to prevent tax evasion in various ways, including transfer pricing.
The NBR chairman said the proposed bill has already been posted on the NBR website. It will go to Cabinet for approval next month after taking recommendations from various stakeholders by November 25, he continued.
The NBR chairman, however, did not specify when the law could be tabled in parliament.
The current Income Tax Act is in effect under the Income Tax Ordinance, 1984. Even though the law has been amended by statutory ordinances from time to time, it is still an ordinance. .
In 2011, the government spoke for the first time about the formulation of a new income tax law. Despite extensive activity and review in recent years, the long-awaited new income tax law has yet to be adopted.
Asked about the delay at Sunday’s press conference, the NBR president declined to comment.
The NBR chairman briefed the media on the changes to the bill.
He said that although the existing law is in English, efforts have been made to present the new law in Bengali and in a straightforward manner.
Unlike the existing law, the new one has separate chapters and sections that integrate all issues related to the determination of taxpayer income in a particular sector.
In addition, the bill includes various provisions aimed at ensuring the transparency of the control of the tax files of tax officials, at making the rules of withholding and collection at source more clear and precise, and at avoiding any ambiguity in the calculation of taxpayer income, to adjust losses and to make deductions. , and streamline the approval of business spending, the NBR chairman said.
In addition, national transfer pricing and anti-avoidance rules have been introduced.
The NBR chairman said that one of the goals of the new income tax law is to accelerate the country’s economic growth, ensure a favorable tax environment, ensure responsible tax administration and facilitate tax administration.
Senior NBR officials were also present at the press conference.