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Dhaka's Tax Experts Voice Concerns Over New Income Tax Act

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Muhammad Jawad
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Dhaka's Tax Experts Voice Concerns Over New Income Tax Act

Dhaka's tax experts have recently raised concerns about a provision in the new Income Tax Act of 2023 that prohibits the extension of deadlines for filing tax returns beyond November 30. This matter was discussed at length during a dialogue hosted by the Business Initiative Leading Development (BUILD) in Motijheel, Dhaka.

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Changes to the Income Tax Act

The dialogue, attended by former National Board of Revenue (NBR) member Md Alamgir Hossain along with other tax experts and representatives from the business community, criticized the removal of the previous system. Under the old system, extensions were granted for valid reasons. Now, tax returns submitted after the deadline result in a 4% fine and a loss of eligibility for investment rebates.

A Push for Progressive Taxation

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The discussion also touched on the necessity for progressive taxation. The participants suggested an increase in the maximum tax rate for high-income individuals to 35% and a hike in the surcharge for the wealthy. These measures aim to combat income inequality, a pressing issue in contemporary society.

Other Matters Discussed

Apart from these concerns, the dialogue also tackled issues related to the taxation of multinational tech companies, taxpayer harassment, and the weaknesses in the NBR's automation system. There was a consensus on the need to improve trust between tax officials and taxpayers. The participants called for the NBR to adopt a more people-friendly approach in its operations.

The dialogue concluded on the note of the importance of a fair and efficient tax system. The participants believe that such a system is crucial for a healthy economy and the welfare of the people. The dialogue served as a platform for professionals to voice their concerns and suggest improvements to the existing tax policies, fostering a climate of change and development.

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