Amendments to VAT act, rules proposed

FE Team | Published: June 08, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
Finance Adviser Mirza Azizul Islam said Thursday steps have been taken to amend acts relating to tax collection procedures and reducing the number of required documents.
While presenting the national budget for fiscal 2007-08 he proposed several amendments to the Value Added Tax Act, 1991 and the Value Added Tax rules, 1991.
Under the proposed amendments, he said, minimum penalty for tax evasion is to reduce to 25 per cent from 50 per cent and maximum penalty to 75 per cent from 200 per cent.
He also said maximum penalty for minor offences has been proposed to reduce from Taka 50,000 to Tk 25,000.
"Maximum penalty for major offences is to reduce from Tk 300, 000 to Tk 100,000," he said in his budget speech.
He also proposed reduction of deposit ranging from 10 per cent to 25 per cent of the amount assessed or fine imposed now required for filing an appeal, to 10 per cent.
"Relaxation of the mandatory provision of submitting Mushak Challan 11 has been proposal to allow the issuing units to issue challan in their own formats incorporating extra information needed but keeping intact the required legal information currently contained in Form Mushak-11," finance adviser said.
He said the withdrawal of the provision of attaching challan along with each tax return has been proposed.
He said the proposal for delegation by the National Board of Revenue the power in regard to use of computer generated challan and maintenance of accounts of registered organisations to the Commissioners of VAT is also included.
He also said the withdrawal of the provision of annual renewal of VAT registration by commercial importers has been also proposed.
There is a proposal for re-fixing the ceiling of invested capital in plant, machineries and equipment from Tk 500,000 to Tk 700,000 as a part of facilities extended to the cottage industries, he said.
The finance adviser said enhancement of the ceiling of VAT exemption from Taka 6,000 to Tk 10,000 relating shipment of samples of pharmaceutical products to foreign countries has been proposed.