Professional Documents
Culture Documents
Analysis of The Finance Bill 2023 by SMAC Advisory-1
Analysis of The Finance Bill 2023 by SMAC Advisory-1
Analysis of The Finance Bill 2023 by SMAC Advisory-1
This handout provides an overview of the changes brought in by the Finance Bill
2023 and SROs issued thereafter. The handouts has been prepared on the basis of
publicly available sources i.e. NBR website.
The information contained in this document is of a general nature and is not intended
to address the circumstances of any particular individual. Although we aim to
provide accurate and timely information, we do not provide assurance that such
information is accurate as of the date it is received or that it will continue to be
accurate in the future. No one should act on such information without appropriate
professional advice after a thorough examination of the particular situation.
National Budget Comparison
FY 2023-24 (Proposed) FY 2022-23 (Revised) % Change
Particulars
Amount in Crore Taka Amount in Crore Taka
Sources of Receipts:
2023-24 (In Crore Taka) 2022-23
Total Estimated Receipts – 430,000 Total Estimated Receipts – 370,000
2022-23 2021-22
59,510 56,408
Tax Tax
Inspiration Motivation
75,889 71,712
VAT VAT
Vision Innovation
33,476 25,899
Import & Other Duty Import & Other Duty
Idea Imagination
Revenue
27,165 25,966
Collection
Supplementary Duty CREATIVITY Supplementary Duty
Upto February 2023
Brainstorming Source: Budget Speech, NBR Website Knowledge
Upto February 2022
Year-wise NBR Budget
in Crore Taka
430,000
500,000 100%
370,000
370,000
89%
330,000
330,000
330,000
78%
325,600
400,000 72% 80%
296,201
301,000
300,500
292,881
280,063
350,000 70%
263,886
63%
300,000 60%
218,616
215,400
250,000 50%
200,000 40%
150,000 30%
100,000 20%
50,000 10%
- 0%
Simplification
WASA
Impact
Motor Car excluding buses,
minibuses, coasters, prime movers, ● Great initiative by the Govt.
trucks, lorries, tank lorries, pickup ● Assessee will be discouraged to purchase
vans, human haulers, autorickshaws additional car
and motorcycles ● Effective tax rate of corporate will be higher
Environmental Surcharge
Impact
• Increased Tax Burden of Tobacco Leaf
Farmer
• Contradicts with the tax exemption of
Farmers having mostly agricultural Income
TDS On Govt. Approved Foreign Loan Interest
Exemption Omitted
Current Proposed
Statement of Tax deducted & Collected u/r 18 Monthly
Statement of Dividend Payment u/s 110 Yearly
Statement of Interest Payment u/s 109 Yearly Statement of WHT tax
u/s 75A (Monthly) Monthly
Statement of TDS from Salary u/s 108 Yearly
Statement of Salary Tax deducted u/r 21 Monthly
Statement of WHT tax u/s 75A Half Yearly
Tax-free Income
Person
Then Now Increased
Person including
individual, Hindu 300,000 350,000 50,000 Impact
Undivided Family
Female & assessee aged Some relief from
350,000 400,000 50,000
more than 65 years
tax for the mid-
Third Gender 350,000 475,000 125,000 level taxpayers
Gazetted wounded
475,000 500,000 25,000
Freedom Fighter
Gainers vs Losers for increasing Tk. 50K Limit
Entertainment Allowance
Medical Allowance
Increase of Surcharge free limit
No Surcharge
for having
the net wealth upto Tk. 4 Crore
Impact
Proposed Net Asset
Surcharge Rate Current Net Asset Value
Value
● Only the person having
0% up to 3 crores up to 4 crores
the net wealth upto 4
4 crores to 10 crores/ More 4 crores to 10 crores/ Crore got the benefit
than one car in own name/ More than one car in own
10%
House Property more than name/ House Property ● No impact for them who
8,000 SFT more than 8,000 SFT have net wealth more
20% 10 crores to 20 crores 10 crores to 20 crores than 4 Crore
30% 20 crores to 50 crores 20 crores to 50 crores
Type of Travel Current Travel Tax Rate Current Travel Tax Rate
Impact
Cost of Air Travel will increase
Exemption on Travel Tax
VAT
Consultant
Marketplace means a digital commerce platform in which one or more sellers insert information about their
products or services and supplies are provided through the said platform, which means in this case that no
product will be bought or sold by the person operating the marketplace and they will not have any point of sale.
“Online Retail Sales" means the purchase and sale of goods or services through the use of
electronic networks which have previously been purchased from any manufacturer or service
provider or merchant on payment of VAT and the same shall be supplied by the online retailer
on payment of VAT and in case the said online retailer does not have any sales center of its own
Purchase
Sales
Mandatory
VAT
Registration
Digital
Mushak 6.3
Need to show
separately in the part
3
Output VAT
Import of Service
= BDT 1,000
Previously
▪ No more input tax credit on non-rebatable
Partial Input Tax Credit: 2000 x (5,000 + 3,000) / 10,000 supply
▪ Formula has been aligned with actual
= BDT 1,600 rebateable input tax credit
Payment through banking system
Input tax credit & decreasing adjustment can’t be claimed through amendment of VAT Return
Decreasing
Adjustment Claim within time limit, otherwise
cost will increase
Refund of Supplementary Duty for Exporter
VAT
Authority
Previous
Product Name New Rate
Rate
Advance Tax
Product Name
(AT)
Paint Primers
Price Price
HS Code HS Code Details Particulars SD(%)
(Previous) (Now)
Lower 40 45 58
Medium 65 67 65
Cigarettes Containing
24.02 2402.20.00
Tobacco (10 Shalaka) Higher 111 113 65
Highest 142 150 65
Customs
Ex-bond Bill of Entry
Ex-bond BOE
Replacement of Patents and Designs Act
Maintenance of a register is
mandatory for all goods irrespective Impact
of duty paid or not. This will help to keep track of all the
goods.
CD increase
on DUTY
imposition on
Cashew Nuts
Agricultural
from 5% to Products
15%, SD 20%
20% SD on
Processed
nuts and
TTI increase processed
on Cashew fruits
Nuts from 25% CD on Fresh
Concessionary DUTY
rate on imposition on
Health Sector
SD on Other
Silicon tube products containing
substituted or
reconstituted
tobacco 150%
SD on parts of CD on
Electronic Electric
cigarettes and
electric vaporizing
cigarette
devices from 0% to increase from
100%. 5% to 25%
Implication of Duty on Industrial Sector
DUTY
CD 15% on Lift imposition on CD on Master batch not
and skip hoists Industrial Sector containing pigments &
non-printed cast
polypropylene film &
Others from 10% to
15%
CD on natural
CD of 15% from
or artificial
1% on escalator
abrasive powder
and moving
walkways or grain from
10% to 15%
Implication of Duty on Cement Industry
DUTY
imposition on
Cement Industry
Cost of imported
software will
increase
Implication of Duty on Electric Panel Industry
Electric Motor Manufacturing Industry
CD increased
from 1% to 10%
on Electric Panel
Cost will increase
8543.90.00 8714.93.10
8503.00.90
Decreased Gold Import Limit: Passengers can now import gold bars
weighing over 117 grams (previously 234 grams) by paying duty and
taxes and making a declaration upon arrival.
No Concealed Excess: Any attempt to carry more gold than the specified
limit concealed will result in confiscation.