Indenting agents want VAT withdrawal

Country's indenting agents have sought withdrawal of 5.0 per cent VAT (Value Added Tax) from indenting services in the greater interest of the sector.
Leaders of the Bangladesh Indenting Agents' Association (BIAA) said indenting is a government-recognised service export sector and as per Clause 24 (5) of new VAT Act-2012, VAT on service export should be at zero per cent.
The association has requested the commerce ministry through a letter to take proper steps in this regard.
The government imposed 5.0 per cent VAT on indenting services in the current national budget.
Federation of Bangladesh Chambers of Commerce and Industry and the association earlier requested the finance and planning ministers to withdraw the VAT, but to no avail, according to the letter.
Due to imposition of VAT, some 90 per cent businesses are operating their activities through proforma invoice, said the letter.
The indentors have been operating ethical business practices complying with all existing government rules and regulations since 1978, an entrepreneur said, adding that this sector was facing serious challenges due to the VAT imposition.
He claimed that VAT was imposed by the revenue regulator on indenting services illogically.
There should not be any VAT on indenting services according to the existing VAT law, he said, adding that the government should withdraw the VAT as early as possible for the betterment of the sector.
According to the leaders of the indenting agents' association, if the existing VAT is withdrawn as per the existing VAT act, it will help the indenting business in the country flourish further.
The indenting agents' association is a national body of the indentors licensed under the Ministry of Commerce and incorporated with the Registrar of Joint Stock Companies & Firms.
The association is affiliated with the FBCCI as an "A" class association.

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