Muhith proposes to hike VAT collection from domestic sources
Saturday, 12 June 2010
FE Report
The Finance Minister AMA Muhith Thursday proposed to augment VAT collection from domestic sources by withdrawing truncated base value from some services.
Dockyard, advertising agency, printing press, courier service, consultancy and supervisory firm, audit and accounting firm, architect and interior designer, graphic designer, picnic and shooting spot, amusement and theme park, and air-conditioned restaurant might have to pay 15 per cent tax instead of 4.5 per cent as per the budget proposal.
The revision of truncated base value at actual value addition takes place for the services provided by commercial importer and businessman (3.0 per cent), construction firm (5.0 per cent), furniture manufacturer (6.0 per cent), furniture seller (3.0 per cent) and procurement provider(4.0 per cent).
In order to broaden the scope for VAT collection at source, the finance minster proposed to include under it any purchase of goods or services through tender by government and semi-government organisations, autonomous bodies, NGOs, banks, insurance companies or any other financial institutions, limited companies and educational institutions.
In order to standardise VAT system on the basis of tariff value, he proposed to increase tariff value in some cases and increase the amount of fixed rate of VAT.
To encourage the entrepreneurs set up heavy industries, he proposed to exempt manufacturers of refrigerators, freezers, motorcycles and energy saving bulbs along with its raw materials from VAT.
The finance minister proposed exemption of VAT from meal of maize, plastic and rubber-made sandal up to Tk 80 price limit per pair (manufacturing state), travel agency and manpower export (service stage).
He also proposed withdrawal of VAT from handmade biscuits and cake (manufacturing stage), raw rubber and metalised flat yarn (import and manufacturing stage), silver bullion and gold bullion (import stage), private universities and social and sports club (service stage).
Exclusion of chanachur, juice, energy drink, cigarette, bidi, gul, zarda and MS products from cottage industries facility was proposed in the budget.
Muhith also proposed amendment of provision about deduction of VAT at source at import stage for commercial importers and fixation of VAT deductible at source at 3.0 per cent.
The Finance Minister AMA Muhith Thursday proposed to augment VAT collection from domestic sources by withdrawing truncated base value from some services.
Dockyard, advertising agency, printing press, courier service, consultancy and supervisory firm, audit and accounting firm, architect and interior designer, graphic designer, picnic and shooting spot, amusement and theme park, and air-conditioned restaurant might have to pay 15 per cent tax instead of 4.5 per cent as per the budget proposal.
The revision of truncated base value at actual value addition takes place for the services provided by commercial importer and businessman (3.0 per cent), construction firm (5.0 per cent), furniture manufacturer (6.0 per cent), furniture seller (3.0 per cent) and procurement provider(4.0 per cent).
In order to broaden the scope for VAT collection at source, the finance minster proposed to include under it any purchase of goods or services through tender by government and semi-government organisations, autonomous bodies, NGOs, banks, insurance companies or any other financial institutions, limited companies and educational institutions.
In order to standardise VAT system on the basis of tariff value, he proposed to increase tariff value in some cases and increase the amount of fixed rate of VAT.
To encourage the entrepreneurs set up heavy industries, he proposed to exempt manufacturers of refrigerators, freezers, motorcycles and energy saving bulbs along with its raw materials from VAT.
The finance minister proposed exemption of VAT from meal of maize, plastic and rubber-made sandal up to Tk 80 price limit per pair (manufacturing state), travel agency and manpower export (service stage).
He also proposed withdrawal of VAT from handmade biscuits and cake (manufacturing stage), raw rubber and metalised flat yarn (import and manufacturing stage), silver bullion and gold bullion (import stage), private universities and social and sports club (service stage).
Exclusion of chanachur, juice, energy drink, cigarette, bidi, gul, zarda and MS products from cottage industries facility was proposed in the budget.
Muhith also proposed amendment of provision about deduction of VAT at source at import stage for commercial importers and fixation of VAT deductible at source at 3.0 per cent.