NBR simplifies VAT payment procedures of some professionals, service providers

Doulot Akter Mala | Published: June 24, 2008 00:00:00 | Updated: February 01, 2018 00:00:00

The government has simplified procedures of VAT payment by specialised physicians, law advisers, immigration advisers, coaching centres, English medium schools, and private medical and engineering colleges.

Following complaints of these professionals and service providers on complex system of VAT payment, the National Board of Revenue (NBR) has simplified the procedures by introducing an easy invoice (chalan).

The NBR has issued a Statutory Regulatory Order (SRO) this week regarding the new measures. The decision will come into effect from December 1, 2008.

In a major expansion of the tax net, the government this year has introduced 4.5 per cent VAT on services of these professionals and organisations, who have been paying VAT through a regular invoice. These service providers will have to provide only three information in the invoice that would include their nature of service, taxable value and total value (including VAT).

The NBR insiders said among the service providers specialised physicians and English medium schools have been paying VAT on regular basis. But, complex procedures of VAT payment have been discouraging a large number of them from responding to the government's measures, they said.

The NBR is yet to calculate the total collection separately from these sectors, which could play a major role in enhancing the total VAT income.

In the outgoing (2007-08) fiscal, collection of VAT is lagging behind compared to other two wings - income tax and customs.

VAT department will have to struggle a lot to achieve the increased target due to poor implementation of Annual Development Programme (ADP) and sluggish trend in the construction sector, officials said.

VAT collection target for the upcoming (2008-09) fiscal is set at Tk 183.54 billion, estimating a 21.46 per cent growth on the revised target of Tk 151.11 billion of 2007-08.