UNB, Dhaka :
The World Bank will provide $ 60 million to modernise Bangladesh’s value added tax (VAT) administration and to boost tax revenue.
An agreement to this end was signed on Sunday at ERD in city’s Sher-e-Bangla Nagar area.
Economic Relations Division (ERD) Additional Secretary Kazi Shofiqul Azam and World Bank Lead Economist and Acting Country Director Salman Zaidi signed the deal on behalf of their respective sides.
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 time with a 10-year grace period, and carry a service charge of 0.75 percent.
The Washington-based lending agency is giving the fund under the VAT Improvement Programme Project which will introduce automation, including online VAT taxpayer services, and improve transparency in the VAT administration system.
The project eyes the ratio of VAT to Gross Domestic Product (GDP) to increase by at least one percentage point of GDP by 2019. The VAT to GDP ratio for 2012-13 is 3.7 percent.
It 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 project will include a campaign to raise awareness of the need to register and file for VAT. The project will seek to increase the number of active registered taxpayers to 85,000 within the next five years compared to around 35,000 VAT payers today.
It will introduce modern business processes and Information Technology systems as well as a more transparent service-oriented tax administration. Registration, return processing, and tax payment will become possible online. This will reduce compliance costs for taxpayers.
The project will also support the VAT administration system to become fully compliant with Bangladesh’s Right to Information (RTI) Act. The introduction of vigorous Management Information System will enable the administration to detect irregularities and initiate remedial measures.
An ERD official said the project will improve taxpayer services, encourage better compliance and increase tax revenue by automating the VAT system.
The World Bank will provide $ 60 million to modernise Bangladesh’s value added tax (VAT) administration and to boost tax revenue.
An agreement to this end was signed on Sunday at ERD in city’s Sher-e-Bangla Nagar area.
Economic Relations Division (ERD) Additional Secretary Kazi Shofiqul Azam and World Bank Lead Economist and Acting Country Director Salman Zaidi signed the deal on behalf of their respective sides.
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 time with a 10-year grace period, and carry a service charge of 0.75 percent.
The Washington-based lending agency is giving the fund under the VAT Improvement Programme Project which will introduce automation, including online VAT taxpayer services, and improve transparency in the VAT administration system.
The project eyes the ratio of VAT to Gross Domestic Product (GDP) to increase by at least one percentage point of GDP by 2019. The VAT to GDP ratio for 2012-13 is 3.7 percent.
It 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 project will include a campaign to raise awareness of the need to register and file for VAT. The project will seek to increase the number of active registered taxpayers to 85,000 within the next five years compared to around 35,000 VAT payers today.
It will introduce modern business processes and Information Technology systems as well as a more transparent service-oriented tax administration. Registration, return processing, and tax payment will become possible online. This will reduce compliance costs for taxpayers.
The project will also support the VAT administration system to become fully compliant with Bangladesh’s Right to Information (RTI) Act. The introduction of vigorous Management Information System will enable the administration to detect irregularities and initiate remedial measures.
An ERD official said the project will improve taxpayer services, encourage better compliance and increase tax revenue by automating the VAT system.
