The Institute of Chartered Accountants of Bangladesh (ICAB) on Saturday welcomed the proposed budget for the fiscal year 2024-25 for changing some rules of income tax.

The ICAB said the tax rate introduced for two years, reducing tax rates for private companies, one-person companies (OPC) and some essential commodities will bring pace in trading.

The ICAB leaders said this in a post-budget press conference at CA Bhaban in Karwan Bazar on Saturday.

ICAB President Mohammed Forkan Uddin FCA, Chairman of Taxation and Corporate Laws Committee Md Humayun Kabir FCA spoke in the press conference, while Snehasish Barua a Founding Partner at Snehasish Mahmud & Co gave a presentation on different tax reforms in the budget.

They said that the Document Verification System (DVS) is implemented jointly by NBR and ICAB which is supported in the budget and will contribute to enhance revenue collection.

The ICAB leaders also welcomed the change to pay 10 percent instead of 20 percent of the demand excluding the fine, stipulated in the impugned order while submitting an application for appeal to the Appellate Tribunal and Appeal Commissionerate.

The charter accounts said that changing on business having turnover above Tk 10 crore as VDS authority will increase VAT collection.

They also said that clearance of import goods will be easier due to allowing duty realized through a specific form instead of bills of entry or export bills.

The ICAB leaders expressed concern that there is an inflation rate in the country of over 9 percent, which hints at higher inflation. In these circumstances, the budget proposed to meet a deficit of around 20 percent of the total budget, or Tk1.60 lakh crore met by borrowing from domestic sources, could raise inflation further.