FE Today Logo
Search date: 29-01-2018 Return to current date: Click here

VAT digitisation almost halts as no proposal yet from FBCCI

Doulot Akter Mala | January 29, 2018 00:00:00


Digitisation of VAT process remains almost stalled due to delay in getting amendment proposals to the existing VAT rules from the business community.

The process remained shelved for the last two months due to such unusual delay, said a senior VAT official.

"The VAT wing needs to change a number of documents, including VAT return forms, to introduce online VAT return submission and other matters," he said.

Amendment to the existing rules-1991 is necessary for incorporating provisions of digitisation.

The official said legal backup is necessary to go with the digitisation process.

The National Board of Revenue (NBR) is yet to get opinions from the country's apex trade body to finalise the draft rules, he added.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) in a meeting with NBR on November 22 last year committed to provide its suggestions.

The board had sought their opinion following instruction of the Finance Minister in November last for making the VAT rules business-friendly.

To expedite the process, the VAT wing on January 25, 2018 sent a letter to the FBCCI president, seeking their opinion within next seven days.

"In case of failure in providing its opinion, the board would consider the silence as 'no opinion' on the draft rules," the letter reads.

FBCCI president Shafiul Islam said the experts' committee, which was working on the issue, is yet to submit the report to him.

"It is a matter of analysis before making the recommendations. The NBR should not impose any deadline for this," he added.

According to the VAT officials, the existing VAT law-1991 does not have the digitsation provision for continuation of the online activities of VAT.

The government has deferred the new VAT and Supplementary Duty Act-2012 by two years until 2019. The new law was scheduled to come in force from July 1, 2017 with all provisions of the VAT process digitisation.

Officials said the VAT Online Project (VoP) will not be able to introduce the online submission of VAT returns unless the existing VAT rules are amended.

Former FBCCI adviser Manzur Ahmed, who is now an adviser of Bangladesh Chamber of Industries (BCI), said the business leaders held meetings with the NBR and compiled their opinion.

"We have sent the opinion to the FBCCI. But I wonder, what is the reason behind the delay," he said.

Sheikh Fazle Fahim, first vice president of the FBCCI, said the experts' committee, led by him, was taking time as the work was more detailed than expected.

"We found some of the provisions of the new VAT and SD law in the draft rules," he said.

The suspended VAT and SD law should not come in the amended rules of the existing law as small and medium businesses will be greatly affected, he added.

"We will clear our position to the NBR tomorrow (Monday)," he told the FE Sunday.

He, however, welcomed the digitisation of VAT process under the existing law.

[email protected]


Share if you like