Indenting agents seek withdrawal of 15pc VAT

FE Desk | May 19, 2019 00:00:00

A delegation of Bangladesh Indenting Agents' Association (BIAA), led by its president Adv. Rafiqul Islam Masum met Planning Minister Abdul Mannan, MP recently in the Planning Division Office at Sher-E-Bangla Nagar, Dhaka. MS Siddiqui, Past President, BIAA was also present on the occasion

A delegation of Bangladesh Indenting Agents' Association (BIAA), led by its president Adv. Rafiqul Islam Masum met Planning Minister Mr. Abdul Mannan, MP recently in the Planning Division Office at Sher-E-Bangla Nagar, Dhaka.

The BIAA leaders informed the Minister that indentors have already been receiving Export Registration Certificate (ERC) issued by CCI&E under the Ministry of Commerce since December, 2018.

"However, still VAT on Indenting Commission is being deducted @ 15%, which is contradictory to Section 3 (ka) of VAT Act-1991 which says no VAT should be applicable for exporting sectors.

The BIAA president added that due to imposition of VAT, indenting businesses can't flourish in the country at the desired level.

The BIAA delegates also said that most of the Proforma Invoice issuers don't require any Trade License, TIN, VAT Registration, Bank Account etc on the other hand indentors have to comply with existing rules and laws in force. Due to allowing Proforma Invoice, low quality machines and raw materials are imported which in turn, impede the economic growth of the country and at the same time government is losing huge foreign currency.

They informed the Minister that the issue of Proforma Invoice came in the 11th Meeting of the Private Sector Development Policy Co-ordination held at Prime Minister's Office, whereas several recommendations were made by BUILD and BIAA for making the PI issuers accountable and being compliant with.

He handed over the resolution of the meeting for kind consideration and necessary action of the Ministry.

The Minister assured the BIAA delegation of his highest cooperation to solve the aforesaid issues from his Ministry.

BIAA Sr. Vice President Md. Nuruzzaman, Vice President A K M Azad, Directors of the Board Md. Abdullah Al Mahmood, Bahalul Mansur Sagor, Md. Rashed Khan, M. Kamal Uddin, M. Mahmudur Rashid, Col. Md. Moyenul Haque, Mr. MS Siddiqui, Past President, BIAA and Asoke Kumar Biswas, Senior Assistant Secretary, BIAA were present in the meeting.