ICAB Comments on Proposed National Budget and Inflation Concerns

The Institute of Chartered Accountants of Bangladesh (ICAB) has raised concerns about the proposed national budget, warning that financing a significant amount of money through internal borrowing could lead to inflation.

ICAB president Forkan Uddin highlighted that the country’s inflation rate is already over 9.0 per cent, indicating high inflation. He pointed out that approximately 20 per cent of the total budget, around Tk 1.6 trillion, is planned to be financed through borrowing from domestic sources, which could further exacerbate inflation.

Speaking at a post-budget press conference at the ICAB head office in Karwanbazar, Mr. Forkan emphasized the need to widen the tax net and suggested collaboration between the National Board of Revenue (NBR) and ICAB to enhance revenue collection.

The ICAB leaders also discussed the importance of implementing the document verification system (DVS) to combat undisclosed money in corporate entities. They supported the idea of granting amnesty for whitening undisclosed money, which could help increase the country’s tax revenue.

Overall, ICAB commended the government for presenting a timely and substantial budget proposal, representing 14.2 per cent of the country’s total GDP. Despite challenges like the Russia-Ukraine war, inflation, and economic uncertainties, ICAB believes that the budget will play a crucial role in the country’s development journey.

The ICAB officials also suggested considering a similar tax structure for public universities and other educational institutions to further enhance revenue collection. The introduction of the DVS has already helped companies legalize undisclosed money by paying a 15 per cent tax, contributing to increased transparency and tax revenue for the government.