bdnews24.com :
Businesses have urged the government to make implementation process of the law on Value Added Tax (VAT) business-friendly.
They also called for a cut on the rate of VAT, an increase in the annual turnover ceiling for getting VAT exemption and narrowing the ‘gap’ between businesses and taxmen.
They came up with the proposals at a seminar attended by Finance Minister AMA Muhith on Wednesday.
The National Board of Revenue (NBR) organised the seminar, presided over by its Chairman Nojibur Rahman.
Board Member Jahangir Hossain presented the keynote paper.
The VAT and Supplementary Duty Act 2012 is scheduled to be operational from July 2016.
Every business unit will have to pay 15 percent VAT once the law become operational.
Now, the rate of VAT is not the same for all businesses. It is 15 percent for all except a few businesses.
For instance, English medium schools have to pay seven percent VAT.
Small businesses have to pay Package VAT.
The new law, once enforced, will eliminate the differences and every business unit will have to pay uniform 15 percent VAT.
Special Guest at the programme, FBCCI President Kazi Akram Uddin Ahmed said, “It will be tough for every business to pay 15 percent VAT, especially for the small ones.”
He demanded an increase in the ceiling of VAT-exempted annual turnover from Tk 2.4 million to Tk 3.6 million.
According to the new act, businesses with an annual turnover of or below Tk 2.4 million will not require to pay VAT.
Those with an annual turnover from Tk 2.4 million to Tk 8 million will have to pay three percent VAT as per the new law.
FBCCI chief Ahmed suggested that tax authorities keep faith in the businesspeople.
“Businesses are harassed during VAT collection. We hope NBR will keep faith in businesses and the harassment will stop.
“We want to pay VAT. An environment is needed for this,” he said.
Finance Minister Muhith said the businesses would have to pay more attention in keeping accounts to pay less VAT.
He said the government earned less-than-expected revenue from tax due to businesses’ tendency to pay less VAT.
“It is our old habit to pay less tax. Many poorer countries in our neighbourhood collect more tax than we do.”
About the turnover ceiling, he said some changes would be made in the next budget to raise the ceiling above Tk 3 million.
Once the new law is implemented, organisations having more than one outlet will not have to register all outlets separately for VAT.
They will be able to collect and pay VAT centrally.
The NBR has launched online registration to ease the process since all businesses will have to register afresh for the new Act.
Businesses have urged the government to make implementation process of the law on Value Added Tax (VAT) business-friendly.
They also called for a cut on the rate of VAT, an increase in the annual turnover ceiling for getting VAT exemption and narrowing the ‘gap’ between businesses and taxmen.
They came up with the proposals at a seminar attended by Finance Minister AMA Muhith on Wednesday.
The National Board of Revenue (NBR) organised the seminar, presided over by its Chairman Nojibur Rahman.
Board Member Jahangir Hossain presented the keynote paper.
The VAT and Supplementary Duty Act 2012 is scheduled to be operational from July 2016.
Every business unit will have to pay 15 percent VAT once the law become operational.
Now, the rate of VAT is not the same for all businesses. It is 15 percent for all except a few businesses.
For instance, English medium schools have to pay seven percent VAT.
Small businesses have to pay Package VAT.
The new law, once enforced, will eliminate the differences and every business unit will have to pay uniform 15 percent VAT.
Special Guest at the programme, FBCCI President Kazi Akram Uddin Ahmed said, “It will be tough for every business to pay 15 percent VAT, especially for the small ones.”
He demanded an increase in the ceiling of VAT-exempted annual turnover from Tk 2.4 million to Tk 3.6 million.
According to the new act, businesses with an annual turnover of or below Tk 2.4 million will not require to pay VAT.
Those with an annual turnover from Tk 2.4 million to Tk 8 million will have to pay three percent VAT as per the new law.
FBCCI chief Ahmed suggested that tax authorities keep faith in the businesspeople.
“Businesses are harassed during VAT collection. We hope NBR will keep faith in businesses and the harassment will stop.
“We want to pay VAT. An environment is needed for this,” he said.
Finance Minister Muhith said the businesses would have to pay more attention in keeping accounts to pay less VAT.
He said the government earned less-than-expected revenue from tax due to businesses’ tendency to pay less VAT.
“It is our old habit to pay less tax. Many poorer countries in our neighbourhood collect more tax than we do.”
About the turnover ceiling, he said some changes would be made in the next budget to raise the ceiling above Tk 3 million.
Once the new law is implemented, organisations having more than one outlet will not have to register all outlets separately for VAT.
They will be able to collect and pay VAT centrally.
The NBR has launched online registration to ease the process since all businesses will have to register afresh for the new Act.
