Countrywide taxpayers’ satisfaction surveys soon

Government's revenue authority is up with preparation for conducting countrywide taxpayers' satisfaction surveys as prelude to enforcement of a new value-added tax (VAT) law.
The updated VAT law -- framed in the light of IMF recommendation -- takes effect with the commencement of the next tax year on July 01, 2016.
The VAT online project wing of the National Board of Revenue (NBR) has already invited expression of interest (EoI) for selection of a local survey firm for doing the satisfaction surveys. Talking to the FE, VAT online Project Director M Rezaul Hassan said the surveys will be launched in March and continued three months until May of fiscal year (FY) 2015-16.
By mid-February, a local firm will be selected for the surveys regarding the new Value Added Tax (VAT) and Supplementary Duty Act 2012.
The local survey company is expected to work in close collaboration with the VAT Wing Project Implementation Unit and a World Bank Group team.
There will be a total of four surveys under which producers, services providers and businesses at retail level will be covered.
"A second taxpayer-satisfactory survey will be held in 2016-17 while next in 2017-18 and 2018-19 respectively," he said. The surveyors will review the existing environment under the current VAT law enacted in 1991.
Officials said currently payers have to visit tax offices for registration and payment of VAT. The new VAT law will ensure online registration, payment and maintenance of accounts of a company.
There will be a full VAT-free threshold for small businesses in the new law. Businesses having annual turnover up to 3.0 million will enjoy full waiver.
For businesses with turnover ranging from Tk 3.0 million to Tk 8.0 million there will be a turnover tax at 3.0 per cent.
Such assessment methodology is meant for easing tax burden on businesses. However, there will be no package VAT or truncated base of VAT system in the new VAT law.
Parliament passed the new VAT law in 2012 to replace the existing one made in 1991.
The government is introducing the new VAT law on the recommendation of the International Monetary Fund (IMF) against disbursement of funds under its extended credit facility (ECF).
VAT online project officials said existing allegations of businesses over harassment by the VAT officials will be reduced after enforcement of the new law as there will be less personal contact between the givers and takers of the tax.
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