VAT Act takes effect in next FY: Kamal

The much-discussed Value Added Tax (VAT) and Supplementary Duty Act, 2012 will be implemented from the next fiscal year, Finance Minister AHM Mustafa Kamal said on Saturday.

However, the government has no plan to implement a uniform VAT rate as part of this new act, he added.

"We will go for implementing the new VAT act from the next fiscal year," the finance minister said while speaking at a function organised in the capital on the occasion of the International Customs Day.

"However, the VAT rate will remain different for different types of products and services."

He added: "For example, the VAT rate will be less for the essential products while it will gradually go up for the semi essential, nonessential or luxurious items."

"We want to generate more revenues, but not to increase the tax rate," Mr Kamal said.

Speaking on the occasion, Economic Affairs Adviser to the Prime Minister Mashiur Rahman called for modernising and rationalising the customs rules and procedures.

"Such rationalisation and modernisation would help make our customs structure better."

He also called for better training and skills enhancement of the customs officials.

Chairman of the National Board of Revenue Mosharraf Hossain Bhuiyan in his speech emphasised on greater security system at the customs check points.

"We need to implement strong scanning system at all the customs check points to ensure such security," the NBR chief said.

"Understanding the importance of better risk management in customs procedure, we have already created a risk management unit," he added.

In his speech, Commerce Minister Tipu Munshi underlined the need for improving the country's position in the 'Ease of Doing Business' ranking.

"We need to see what role the customs department can play in this regard," he said.

FBCCI President Md Shafiul Islam (Mohiuddin) and Country Manager of International Finance Corporation Wendy Werner also spoke on the occasion.

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