Chartered accountants have recommended the government allow taxpayers six months to prepare themselves for adapting to the new VAT law.
The VAT and Supplementary Duty Act will be enforced from July 1, 2016.
They said there is a basic difference between the existing VAT law and new VAT and Supplementary Duty Act that calls for adequate preparation, planning and training of the taxpayers.
The Institute of Charted Accountants of Bangladesh (ICAB) made the recommendation in its budget proposal for fiscal year 2016-17.
"Taxpayers need at least six months to get prepared for the new law after the VAT and SD rules are finalised and enforced," the institute said in its budget proposal to the National Board of Revenue (NBR).
The auditors' grouping, however, submitted the budget proposal to the NBR on both existing VAT law, framed in 1991, and the new VAT law to be enforced in a few months.
The institute has proposed introducing a single-digit VAT rate instead of 15 per cent uniform rate in the new law, considering the global trade situation.
It also proposed de-linking the VAT law with the income tax ordinance and rules 1984, while withdrawing repeated imposition of VAT.
Supporting the rebate claim, the association leaders said the bill of entry should be enough as document in support of import for offering the rebate to the importers.
The new VAT law has kept provision for obtaining a clearance certificate from the customs authority showing that the goods have been imported for local consumption.
The ICAB also said the integrated tax invoice in the new law is a complex procedure. It cannot be used properly in the present context. Also, it cannot leave any impact in revenue collection.
The integrated tax invoice will create problem for both suppliers and receivers.
The chartered accountants have proposed introducing one tax deduction at source certificate against each supplier at the end of the every tax-term.
© 2024 - All Rights with The Financial Express
