NBR to amend draft VAT law after talks with businesses
Doulot Akter Mala | Tuesday, 5 April 2011
Doulot Akter Mala
The National Board of Revenue (NBR) will amend the draft law on the value added tax (VAT), in line with the suggestions of the business leaders and chamber bodies, following the latter's sharp reactions to some of the proposed changes in the law, said a top VAT official. The revenue board will hold a two-day workshop later this month to discuss pros and cons of the draft VAT law as some leading businessmen and representatives of chamber bodies expressed their strong resentment over the proposed changes in the VAT collection system. "We will hold a two-day workshop on April 20-21 with the chamber leaders and businessmen to discuss the rules under the draft VAT law," NBR member (VAT) Abdul Mannan Patowary told the FE. He said the revenue board will amend the draft VAT law, in line with the suggestions of the businessmen to ensure its proper enforcement. All senior officials and commissioners of the VAT department will attend the workshop, he added. The NBR will discuss in details the issues on the draft VAT law section-wise to help avoid any untoward situation over its implementation from 2012, he said. The revenue board faced some strong opposition from businessmen at a seminar, arranged last month, to share views on the proposed changes to the existing VAT law. Federation of the Bangladesh Chambers of Commerce and Industry (FBCCI) and shop owners and light engineering associations have urged the NBR to frame the new law, after discussions with the members of the business community who will be affected by the changes. Another senior VAT official said the business leaders were included in the expert team that prepared the new VAT law. He said none of the chambers has so far placed any suggestion to the board on the proposed law in black and white. At the seminar last month, the business leaders demanded continuation of package-based, truncated VAT system which the draft law proposed to withdraw from 2012. Officials said the proposed law has recommended for removal of all distortions under the VAT system to help boost revenue collection. Over the last two years, VAT emerged as the largest source of revenue collections among NBR's three wings, the two others being those of income tax and customs. A recent NBR data showed a 31 per cent growth in collection of domestic VAT until February of the current fiscal over the corresponding period of the last fiscal. The revenue board has set a Tk 252.83 billon target for VAT, to be collected from local sources. During the July-February period, the revenue board received Tk 173.68 billion as VAT against the target which is up by Tk 40.57 billion compared to that of the same period of the previous fiscal.
The National Board of Revenue (NBR) will amend the draft law on the value added tax (VAT), in line with the suggestions of the business leaders and chamber bodies, following the latter's sharp reactions to some of the proposed changes in the law, said a top VAT official. The revenue board will hold a two-day workshop later this month to discuss pros and cons of the draft VAT law as some leading businessmen and representatives of chamber bodies expressed their strong resentment over the proposed changes in the VAT collection system. "We will hold a two-day workshop on April 20-21 with the chamber leaders and businessmen to discuss the rules under the draft VAT law," NBR member (VAT) Abdul Mannan Patowary told the FE. He said the revenue board will amend the draft VAT law, in line with the suggestions of the businessmen to ensure its proper enforcement. All senior officials and commissioners of the VAT department will attend the workshop, he added. The NBR will discuss in details the issues on the draft VAT law section-wise to help avoid any untoward situation over its implementation from 2012, he said. The revenue board faced some strong opposition from businessmen at a seminar, arranged last month, to share views on the proposed changes to the existing VAT law. Federation of the Bangladesh Chambers of Commerce and Industry (FBCCI) and shop owners and light engineering associations have urged the NBR to frame the new law, after discussions with the members of the business community who will be affected by the changes. Another senior VAT official said the business leaders were included in the expert team that prepared the new VAT law. He said none of the chambers has so far placed any suggestion to the board on the proposed law in black and white. At the seminar last month, the business leaders demanded continuation of package-based, truncated VAT system which the draft law proposed to withdraw from 2012. Officials said the proposed law has recommended for removal of all distortions under the VAT system to help boost revenue collection. Over the last two years, VAT emerged as the largest source of revenue collections among NBR's three wings, the two others being those of income tax and customs. A recent NBR data showed a 31 per cent growth in collection of domestic VAT until February of the current fiscal over the corresponding period of the last fiscal. The revenue board has set a Tk 252.83 billon target for VAT, to be collected from local sources. During the July-February period, the revenue board received Tk 173.68 billion as VAT against the target which is up by Tk 40.57 billion compared to that of the same period of the previous fiscal.