Kazi Zahidul Hasan :
The government is going to revise the new VAT law following pressure from the business community, sources said.
Finance Minister AMA Muhith held a series of meetings with Commerce Minister Tofail Ahmed and authorities of the National Board of Revenue (NBR) to amend the law in line with the demands of businesses.
Muhith in a close door meeting with Tofail on Monday spotted provisions of the new law to be revised before its enforcement. The hours long meeting of the government’s two senior Ministers was held at the Finance Ministry, sources close to the Ministry told The New Nation on Tuesday.
Just after the meeting, the Finance Minister sat with two NBR senior officials separately and gave them necessary directives regarding the revision in the law.
“We got instruction from the Finance Minister about amendment of the new law. The revision would be made in line with the demands from the business community,” a senior NBR official told The New Nation on Tuesday, asking not to be named.
“After bringing necessary correction in the VAT law, we will prepare a summary for the Minister. Later, it will be place before the Minister for his consent,” he said. When asked, the NBR official said, “We want to complete the task as soon as possible and hopefully, the summary will be placed before him after his return from Jakarta.”
Finance Minister is now in Jakarta to attend the 41st annual meeting of the Islamic Development Bank (IDB). Muhith left Dhaka on Monday night and is scheduled to return home on May 19.
The Finance Minister in a live show on the upcoming budget that aired in a private TV channel recently said that implementation of the law has become a big challenge for the government as it provoked outcry from the business community.
He also admitted that pressure mounting on him to bring changes on the new law.
Muhith on Sunday in a meeting with the NBR Chairman instructed him to bring changes on the new VAT law.
NBR is supposed to enforce the new law from July 1. It was passed in Parliament on November 2012.
Earlier, various trade bodies, including the FBCCI, strongly opposed introduction of the new VAT law claiming that imposing new levies under the law could cripple the country’s trade and business and put additional burden to the consumers.
They also identified various inconsistencies in the law and urged the government take steps to remove the inconsistencies placing several recommendations to Prime Minister Sheikh Hasina, Finance Minister AMA Muhith, Commerce Minister Tofail Ahmed and NBR Chairman Md Nojibur Rahman.
“There are many inconsistencies in new law and the business community raised its reservation rearguing the matter,” Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Matlub Ahmad told The New Nation on Tuesday.
“These issues should be resolved by bringing necessary changes on the law. If the law is not amended, then VAT collection process will be more complicated affecting all sections of the economy, including the trade and commerce,” he added.
The FBCCI leader also said the amendment should be done before enforcement of the law.
Ahmad also said it is quite impossible to collect VAT at the rate of 15 per cent and if the law is implemented without amendment, then businessmen may face more harassment.
“We all want to give VAT but the government will have to make the process hassle-free,” he said.
