Business bodies get restive as the time ticks on towards enforcement of a new VAT law without the government-promised trimming of tax package.
Sources in business circles said the apex trade chamber, in particular, expressed its frustration over the delay in implementation of the government assurance of a decision on the package VAT for small businesses.
Leaders of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) requested the National Board of Revenue (NBR) to initiate discussion with the businesses on the new VAT and Supplementary Duty Act 2012, scheduled to take effect on July 01, 2017.
Talking to the FE correspondent, several businesses leaders lamented that they were yet to receive any decision from the NBR although the government assured them of declaring it by January 10, 2017.
Sources concerned said it was decided in a high-level government meeting that the amount of package VAT will be reduced following demand from the small traders.
"The NBR also received consent of the finance minister to cut back on the amount," said one of the leaders.
In the current fiscal year (FY) budget, the government has increased the amount of package VAT twofold. A sharp increase in the tax rate sparked strong agitation among the businesses, especially in the city's Old Dhaka area.
To calm the agitation, the NBR had held several meetings with the trade leaders and assured them of giving an incentive by early January 2017.
In a recent letter, FBCCI secretary-general Mir Shahabuddin Mohammad wrote the FBCCI along with different trade organisations are waiting eagerly to know about NBR's latest position.
"It has been told that a declaration will come on January 10, 2017 in presence of finance, commerce and industries ministers," he wrote.
A working committee, headed by customs policy member, was formed after the national budget for fiscal year 2016-17 to scrutinise the proposals of the FBCCI on VAT, income tax and customs duty.
The committee has held eight meetings so far. On December 28, 2016, the FBCCI got assurance from the NBR that an incentive would be given to the businesses after discussing with the matter with the finance minister.
However, the trade leaders have yet to see any reflection of that promise, the letter observed.
NBR officials said a decision on declaration of the incentives now depends on the will of the government high-ups.
"We do not know about the update on this issue," said a senior VAT official.
This correspondent also contacted NBR chairman Md Nojibur Rahman for his comment but failed to get any reply on this matter until the filing of this report.
doulot_akter@yahoo.com
