The leaders of business community of Chittagong have welcomed the government’s decision for shelving the plan of enforcing the VAT (value added tax) and Supplementary Duty (SD) Act 2012 for two more years. They said that the VAT law was incomplete and needed more scrutiny as the small traders and businesses would have been affected if the law was in force.
They said that a kind of fear and misgiving gripped the small traders about VAT. President of Chittagong Chamber of Commerce and Industry Mahbubul Alam thanked the Prime Minister and Finance Minister for shelving the VAT law.
He pointed out that the CCCI had requested the government before the budget proposal for the fiscal 2017-18 not to enforce the VAT law arguing that it would badly affect the small and medium entrepreneurs.
He said the government finally deferred enforcement of the law. “This decision will definitely have a positive impact on the businesses, traders, entrepreneurs as well as the government,” he added.
He said the decision to revise the excise duty also deserved thanks from the business community and trade body leaders. Vice president of Chittagong Metropolitan Chamber of Commerce and Industry (CMCCI) A M Mahbub Chowdhury said they had proposed formulation of a VAT law in conformity with those in the international arena and that would be acceptable to all.
“The small and medium businesses would have been severely affected as they were supposed to fix up the rate if the VAT law was enforced,” he said, adding that the CMCCI had demanded changes in the Act.
Prof Moinul Islam of Chittagong University, a senior economist, welcomed the decision on VAT law due to so many anomalies in the Act. The Act should be updated through consultation with the business leaders and all concerned, he said. He also appreciated revising the excise duty on bank balance.
General Secretary of Khatungonj Trade and Industries Association Syed Sagir Ahmed said the businesses have long been protesting against the VAT law. He expressed the hope that the government would discuss the issue elaborately with the business people, before taking any final decision in future.
