Kamruzzaman Bablu :
The Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) will meet Finance Minister AMA Muhith on August 31 to place a set of demands including reduction of package VAT by 50% for the ongoing fiscal year 2016-17.
The government had almost doubled the package VAT for traders and businesses by 100% with implementation of FY’17 budget that has come into effect from July 1. Currently, the package VAT for shops located in Dhaka and Chittagong city corporation areas is Tk28,000, which was Tk14,000 in last fiscal year.
Shops in other city corporation areas are now paying Tk20,000 which was previously Tk12,000. In the same manner, shops in municipality areas are paying Tk14,000 from previous Tk7,200.
The rate is now Tk 7,000 for traders in other areas of the country, which was Tk3,600 in FY’16.
The FBCCI will urge the finance minister to revise the rate by half and make it final at the rate that was in effect till FY’16, an office bearer of the apex trade body told The New Nation, seeking anonymity.
The other demand from the trade body includes allowing businesses to pay 3% VAT on the turnover up to Tk5 crore. Currently, 3% VAT is allowed on the turnover from Tk35 lakh to Tk80 crore.
The FBCCI will also seek withdrawal of VAT from different products including biscuit, bread, cake, napkin which were earlier enjoying VAT exemption facility till FY’16. The products fall under VAT net from the ongoing fiscal year.
“In the current budget, there are some issues, which are heating up the country’s business. The aim of the meeting is to rationalise the issues through discussion for the sake of the country’s business especially the small and medium enterprises,” FBCCI First Vice-President Md Shafiul Islam told the this reporter.
“We need a permanent solution to the VAT issue and hope that the committee comprised of business leaders and NBR will be able to reach a consensus,” Shafiul said.
Business people allege that they are harassed by VAT officials, while the government officials say the businesses are not complaint. “Both of the claims are not true,” he said. “We want to resolve the allegation to give a better solution to the business people as well as the government.”
On Tuesday, FBCCI held meeting with NBR where the apex trade body placed the unresolved issues and sought cooperation from the board of revenue.
The business people have given assurance that they would help the NBR collect VAT and the joint committee will work together to devise ways to settle the issues in a better way, said the business leader.
The Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) will meet Finance Minister AMA Muhith on August 31 to place a set of demands including reduction of package VAT by 50% for the ongoing fiscal year 2016-17.
The government had almost doubled the package VAT for traders and businesses by 100% with implementation of FY’17 budget that has come into effect from July 1. Currently, the package VAT for shops located in Dhaka and Chittagong city corporation areas is Tk28,000, which was Tk14,000 in last fiscal year.
Shops in other city corporation areas are now paying Tk20,000 which was previously Tk12,000. In the same manner, shops in municipality areas are paying Tk14,000 from previous Tk7,200.
The rate is now Tk 7,000 for traders in other areas of the country, which was Tk3,600 in FY’16.
The FBCCI will urge the finance minister to revise the rate by half and make it final at the rate that was in effect till FY’16, an office bearer of the apex trade body told The New Nation, seeking anonymity.
The other demand from the trade body includes allowing businesses to pay 3% VAT on the turnover up to Tk5 crore. Currently, 3% VAT is allowed on the turnover from Tk35 lakh to Tk80 crore.
The FBCCI will also seek withdrawal of VAT from different products including biscuit, bread, cake, napkin which were earlier enjoying VAT exemption facility till FY’16. The products fall under VAT net from the ongoing fiscal year.
“In the current budget, there are some issues, which are heating up the country’s business. The aim of the meeting is to rationalise the issues through discussion for the sake of the country’s business especially the small and medium enterprises,” FBCCI First Vice-President Md Shafiul Islam told the this reporter.
“We need a permanent solution to the VAT issue and hope that the committee comprised of business leaders and NBR will be able to reach a consensus,” Shafiul said.
Business people allege that they are harassed by VAT officials, while the government officials say the businesses are not complaint. “Both of the claims are not true,” he said. “We want to resolve the allegation to give a better solution to the business people as well as the government.”
On Tuesday, FBCCI held meeting with NBR where the apex trade body placed the unresolved issues and sought cooperation from the board of revenue.
The business people have given assurance that they would help the NBR collect VAT and the joint committee will work together to devise ways to settle the issues in a better way, said the business leader.
