The payment system of value added tax (VAT) and tax should be simplified, said businessmen at a workshop on Sunday. They also suggested for a system of package VAT for the small traders.
Dhaka Shilpa Malik Samity (DSMS) in partnership with Dhaka Chamber of Commerce & Industry (DCCI) and Business Initiative Leading Development (BUILD) organised the workshop on the simplification of VAT and building awareness at Bangladesh Small and Cottage Industries Corporation (BSCIC) Industrial Area, Rohitpur, Keranigonj, Dhaka on the day.
Former Chairman of National Board of Revenue (NBR) Dr. Abdul Mazid was present as chief guest while Senior Vice President of DCCI Humayun Rashid and Upazila Chairman Shamim Ahmed were also present as special guests.
President of DSMS Hossain A. Sikder said that businessmen are willing to pay VAT and tax but the system of VAT payment should be simplified.
He said that in the new VAT act 2012 which will be implemented from July 2016, there should be a system of package VAT for the small traders.
Former NBR Chairman Dr. Md. Abdul Mazid said that the tax-GDP ratio in Bangladesh is very low for which government is losing its revenue.
"If we properly give tax and VAT, government does not need to borrow money from donor agencies or from banks," he said.
He said that the less government borrows from the banks the more private sector will have access to finance.
He also stressed on simplification of VAT act so that everybody can understand the law thoroughly. He opined that 15 per cent flat VAT rate for all in the new VAT Act 2012 is not reasonable and it will be difficult for the SMEs.
DCCI's Senior Vice President Humayun Rashid said that NBR should arrange several motivational workshops to encourage and train people to pay VAT and Tax.
He urged NBR for ensuring a better system of collecting VAT so that businessmen could escape harassment in giving VAT.
First Secretary, NBR Dr. Md. Abdur Rouf presented the keynote paper and highlighted key features of new VAT Act 2012.
He said that according to the new VAT act no VAT is applicable for the turn over upto Tk 2.4 million (Tk 24 lac) and only 3 per cent turnover tax will be applicable for turnover from Tk 2.4 million (Tk 24 lac) to Tk 8 million (Tk 80 lac).
He requested the businessmen to remain update on the VAT act.
Former Senior Vice President of DCCI Haider Ahmed Khan, FCA, Finance Manager, Berger Paints Abdul Khaleque and President of Bangladesh Indenting Agents Association (BIA) MS Siddiqui spoke on the occasion as panel discussants.
They urged for simplification of VAT act and maintaining a good relation between the tax officials and businessmen. They said that sometimes tax officials harass businessmen in collecting tax or VAT.
DCCI's Vice President Md. Shoaib Choudhury gave vote of thanks. He urged for mutual cooperation between NBR and businessmen for better collection of VAT. He said that complication of law is not an issue, the main thing is simplified implementation. Tax officials should honour the businessmen, he said.
talhabinhabib@yahoo.com
Corporate entities for VAT simplification
FE Report | Published: May 11, 2015 00:00:00 | Updated: November 30, 2026 06:01:00
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