Al Amin :
The VAT Online Project (VOP), which was launched to facilitate the new VAT Act, needs more six months time to complete it’s necessary development works.
The National Board of Revenue (NBR) has been implementing the project with support from the World Bank which aims to facilitate the new VAT Act. This project was planned to be completed by this December. But around 60 per cent of the project has been completed so far. Under this circumstance, Kazi Mostafizur Rahman, the Project Director of the VOP, sent a letter to the NBR Chairman recently seeking six months time extension for completing the project, a NBR official seeking anonymity told The New Nation on Sunday.
Meanwhile, the NBR is still struggling to bring pace on VAT collection, although the revenue collection from other two wings– income tax and import-export– gained momentum from September after economic activities resumed in the country.
NBR officials said VAT collection through online is yet to be expedited, although the NBR introduced Electric Fiscal Devices (EFDs) system experimentally to increased the payment from the business entities. But the system is yet to get pace. Besides, the NBR is yet to set up Sales Data Control (SDC) for chain super shops to ensure VAT collection from the businesses properly, they added.
Businesses are losing interest in VAT returns submission through online as the process is not hassle-free, they added.
According to the NBR data, in the first quarter of the current financial year, the revenue collection gained positive momentum as the economic activities became somehow normal in September. However, the VAT collection has remained at the previous stage.
The VAT collection target in the first 3 months was Tk 23,196 crore but the NBR receipt from the sector Tk18,111 crore during the time and the deficit stood at TK 5085 crore with 1.19 percent growth.
Dr Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD), told The New Nation, “Implementation of new VAT systems by identifying specific areas is very much essential to resolve this complexity of VAT collection.”
“Some businesses can take opportunities of the new systems but the NBR should implement the VAT laws in same structure to stop these loopholes,” she added.
She further said, “NBR’s experimental activities of EFD’s, which are still underway, are very small scale. Resulting it does not impacted on VAT collection.”
Making VAT payments to the government exchequer directly from the bank accounts through online, NBR launched VAT e-payment system under the VAT Online Project.
The authorities concerned have created e-payment module and completed user acceptance test at client-level by three local and foreign banks. As the test results came out successful and satisfactory, this system is now going to be introduced formally.
Kazi Mostafizur Rahman said that any registered businessman would be able to make VAT payment, supplementary duty or any other tax directly to the state coffer from his or her own bank accounts with ease and comfort and also within less time through this system.
“There will be no harassment for the VAT payers under the e-payment system,” he added.
The business insiders, however, opined that the VAT Act is yet to yield full results as the VAT operations could not go under full automation.
Concerned business circle said that once the e-payment system is launched, then the VAT Act would benefit the business community more.
