BSS, Dhaka :
The government has a plan to modernize the value added tax (VAT) administration system to increase the number of active taxpayers to 85,000 within the next five years from around 35,000 VAT payers Sunday.
To reach the target, the government will take a project titled ‘The VAT Improvement Program Project’ from the next fiscal with the financial help of The World Bank, said an official release of the Bank here today.
Meanwhile, The World Bank Board on Friday has approved 60 million US dollars interest-free credit for implementing the program.
The VAT Improvement Program Project will introduce automation, including on-line VAT taxpayer services, and improve transparency in the VAT system, the release said.
The project will support the government to implement the new VAT law which comes into effect in 2015 and aims to provide better services and reduced administrative costs for taxpayers, the release added.
Even the project will include a campaign to raise awareness of the need to register and file for VAT.
Johannes Zutt, World Bank Country Director for Bangladesh, also admitted, “Improving Bangladesh’s ability to raise tax revenue is critical for faster economic growth and overcoming poverty because the country needs more resources to invest in infrastructure and human development compared to other countries in South Asia.
The WB country director said this project will improve taxpayers services, encourage better compliance and increase tax revenue by automating the VAT system.
The project will also support the VAT administration system to become fully compliant with Bangladesh’s Right to Information (RTI) Act.
The credits from the International Development Association (IDA)-the arm of the World Bank group that helps the world’s poorest countries -have 40 years maturity period with a 10-year grace period, and carry a service charge of 0.75 per cent.
