Muhith for raising number of VAT payers many times

Finance Minister AMA Muhith Sunday vented frustration over a paltry number of VAT returns submitted by businesses as he felt the figure should be many times higher.
"I believe some three to six lakh companies are eligible for payment of VAT. The net of Value Added Tax (VAT) should be widened through devising effective strategies," he said. Some 60,000 business firms submit VAT returns now.
His implicit bidding at the revenue authorities for chasing VAT evaders came at an opinion-exchange meet organised by the National Board of Revenue (NBR) at the Bangabandhu International Conference Centre (BICC) on the occasion of celebrating national VAT week.
Business leaders at the function called for lowering the flat 15 per cent VAT rate for smaller business and also for raising the threshold volume for taxing.           
The VAT week July 10-16 is being observed with campaigns for expanding this tax net-all the more necessary now as the government has handed the NBR a huge target attuned to a big budget, worth some Tk 2.95 trillion.
Top nine VAT payers at national level received award at the function. The NBR also awarded 110 top VAT payers from across the country.
The finance minister said tax and VAT are not popular measures. The government reviewed the new VAT and supplementary duty law for addressing complaints from businesses, he said.  
Commerce Minister Tofail Ahmed urged the businesses to pay VAT properly and asked taxmen to ensure taxpayer-friendly environment for them.
"The number of taxpayers is poor in Bangladesh. Tax net can be expanded to rural areas to increase revenue collection," he said.
Economic Affairs Adviser to the Prime Minister Dr Mashiur Rahman said both tax administration and taxpayers should get automated to reap benefit from digitisation.
Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) president Abdul Matlub Ahmad urged the finance minister to consider recommendations of the businesses on framing new VAT law that is scheduled to come into force from July 1, 2016.
"Small businesses will not be able to pay 15 per cent VAT," he said on the new VAT law.
The VAT-free turnover threshold should be raised to Tk 3.6 million from Tk 2.4 million in the new VAT law for small businesses, the chief of the apex trade body proposed.
The next tier should be raised to Tk 15 million from Tk 8.0 million in the new law, he said.
Parliamentary standing committee on the Ministry of Finance president Dr Md Abdur Razzak said awareness is needed to increase domestic revenue collection.
"Policymakers need to get familiar with the tax-revenue concept. One of my colleagues, elected for the period from 1996 to 2001, was unaware about TIN (taxpayer identification number) until 2009," he said.  
He stressed the need for encouraging both government and local investment and also ensuring proper tax collection from householders.
Customs member Farid Uddin chaired the programme while VAT member Enayet Hossain presented a keynote. VAT online project director Rezaul Hassan and Dhaka North commissioner Masud Sadik, among others, also spoke on the occasion.
At the function, Gallerie Apex, Aarong and Mustafa Mart received award as top three VAT payers in the business category.
National Television Limited (RTV), Chowdhury Tea Warehouse and the Rural Electrification Board (REB) have been awarded in services category.
Three state-owned entities-Titas Gas Field, Kailashtila Gas Field and Rashidpur Condensate Fractionation Plant-received award under production category.
The NBR selected the top VAT-paying companies under the highest VAT-payer-awarding policy 2005 (amended) on the basis of the volumes of their VAT paid in the fiscal year 2013-14.
Seven commissionarates outside Dhaka, Chittagong, Sylhet, Comilla, Rangpur, Rajshahi, Khulna and Jessore are also observing the VAT week in a festive mood.
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