The National Board of Revenue (NBR) has taken a move to hold a series of meetings with private sector stakeholders before it starts drafting the new income tax law.
The board has plan to place the first draft of the income tax law by September this year for public scrutiny and submit it in the form of a bill before the Parliament in the budget session for the fiscal year (FY) 2018-19.
The income tax wing of the revenue board has recently sent letters to all of its income tax field-level offices, asking them to hold meetings with their respective taxpayers and stakeholders and seek their opinions on the new law.
On the board's instructions, Large Taxpayers Unit (LTU) of the income tax wing has decided to sit with representatives of the country's scheduled banks, non-banking financial institutions, mobile operators, sadharan bima companies and life insurance companies.
The wing will also hold meetings with retired income tax commissioners and other former senior officials of the NBR seeking their suggestions.
A senior income tax official of the NBR said income tax department has taken an initiative to form a committee for drafting the direct tax law.
The committee will comprise both local and foreign experts, he added.
Officials said the new income tax law will be framed in line with the existing income tax ordinance 1984.
Earlier, a draft 'direct tax code' was prepared by the International Finance Corporation (IFC), but the NBR found it too complex.
The new law was scheduled to be passed by the Parliament in 2016-17 replacing the existing income tax ordinance 1984.
But later on, the NBR rescheduled the enactment as it is going to implement the new Value Added Tax (VAT) and Supplementary Duty Act-2012 from July 01, 2017.
Replacement of two major laws might affect the government's internal revenue collection adversely, officials fear.
The law will be in Bangla in line with the directives of the High Court (HC). The existing income tax ordinance 1984 will be transformed into income tax act.
In the draft direct tax code, there are three parts -- income tax law, gift tax law and wealth tax law.