Increasing VAT to attain MIC status

Tax is the major source of a country's income. Most expenses of a country are met by this income. Former finance minister late Saifur Rahman introduced the Value Added Tax (VAT). And that was why the country's income grew then. It is now mandatory for all retail and wholesale business firms to pay VAT under the VAT act. But the VAT authority does not conduct any drive for collection of VAT at the markets. The annual revenue income of the country is falling. So, how can Bangladesh attain the Middle Income Country (MIC) status by 2021? The National Board of Revenue (NBR) and the VAT department should take necessary action under the VAT act to collect the revenue in this particular area and increase the country's income. The VAT act should be enforced at all shops selling parts, motor parts, shoes and grocery items. Departmental stores, hotels, restaurants, sweets shops, super shops, furniture outlets, bakeries, decorators, community centres, tailoring and clothing showrooms and shops, electronics and hardware shops, C&F firms, transports, jewellery and imitation shops and showrooms, libraries and coaching centres, mobile phone and computer outlets, studios and graphics designers, shops and showrooms at shopping malls and markets and all others should not be spared in any way. To pay VAT on a product sold, a shop or showroom owner or its staff should keep the Point of Sale (POS) software in the business firm and the VAT department should take necessary measures to ensure it. Any shop owner opens their business by investing a big amount of money in the form of capital. But they are flouting the law by overlooking the necessity of installing the POS software that costs only Tk 40-50 thousand. If a proper VAT payment system can be put in place, then a uniform price of a product can be ensured.
VAT payment through POS software should be made mandatory for all and drives should be conducted countrywide by VAT commissioners aided by magistrates. VAT commissioners should enforce the act properly. They should even cancel the licence of any business firm, shop or showroom having no POS software. The NBR chairman should take necessary and urgent measures to increase the country's revenue income paving the country's way for attaining the MIC status by 2021.
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