Finance Minister AMA Muhith said Wednesday there remains a scope to discuss the government's decision on the single rate of VAT with the businesses.
He said the government would hold talks with the businesses on their tax proposals for the next budget.
"We have decided to keep a single rate of VAT, but tax proposals of businesses could be discussed prior to the budget," the finance minister said.
There will be two national budgets prior to the implementation of the new VAT law where tax proposals of the businesses would be reviewed thoroughly.
The new Value Added Tax (VAT) and Supplementary Duty (SD) Act, 2012 is scheduled to come into effect from July 1, 2016.
The finance minister, however, did not make it clear whether the uniform VAT rate at 15 per cent that has been incorporated in the new VAT and SD law, could be reconsidered for multiple rates following demand of the businesses.
"I prefer single rate of VAT. It is an international trend to keep a single rate of VAT but there are also multiple rates in various regions," he said at a taxpayers' motivational programme at the city's Institution of Diploma Engineers, Bangladesh (IDEB).
The National Board of Revenue (NBR) organised the programme to exchange views and motivate the taxpayers on new VAT law.
Speaking at the programme, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) president Kazi Akram Uddin Ahmed said the single VAT rate at 15 per cent would be high for small businesses.
"The vibrant rural businesses would be hit hard by such high rate of VAT," he said.
Mr Akram, however, expressed his optimism over reaching a consensus citing the finance minister's assurance to adjust the rate in the next two budgets prior to implementation of the law.
On demand of the businesses, the finance minister said the minimum VAT-free threshold for annual turnover of companies would be adjusted upward above Tk 3.0 million from existing Tk 2.4 million in the new law.
The amendments would be done soon following recommendations from the businessmen, he added.
"There is a doubt over increased tax burden on businesses after implementation of new VAT law due to lack of clear concept among the businessmen," he said.
Tax burden can be reduced through the maintenance of proper accounting system as businesses can claim rebate on input raw materials, he added.
NBR chairman Md Nojibur Rahman called upon the large taxpayers to cooperate with the government on implementation of the new VAT law.
"The large businesses can work as ambassadors for VAT law. The revenue board has been imparting training to VAT officials to prepare them for implementing new VAT law," he said.
The NBR chief said finalising VAT rules is the utmost priority of the revenue board prior to implementation of the new law.
"We would sit on March 16 next to discuss the draft VAT law and expedite its finalisation," he added.
At the programme, VAT policy member Barrister Jahangir Hossain gave a detailed picture on business-friendly aspects of the new VAT law.
He also replied to different queries of businesses regarding the new VAT law.
The NBR has decided to arrange 203 meetings and seminars to build awareness and motivate taxpayers on VAT law.
In the programme, the finance minister also laid emphasis on expanding the awareness programme outside the capital.
After implementation of the new VAT and SD Act,2012, VAT payers can avail online VAT registration, payment and return submission facility, rebates and refund of paid VAT,
There will be no advance VAT payment and price declaration system in the new law.
Representatives from Unilever, Bangladesh, Berger, ACI, Akij group, British American Tobacco (BAT), Bata, Marico and Navana Furniture made different queries over the new VAT law to the VAT member Barrister Jahangir.
Speaking at the programme, Mr Jahangir said VAT is a regressive tax that both the poor and the rich will have to shoulder equally.
He said there would be a single VAT registration system in the new law and all VAT payers will have to obtain a fresh registration number after implementation of the new VAT law.
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