Muhith, businesses on opposite stance over VAT rates.
Business leaders on Wednesday again demanded that the government should introduce multiple value-added tax rates for different sectors instead of imposing single VAT rate at 15 per cent. Though the government decided to implement the new VAT and Supplementary Duty Act-2012 with a single rate VAT system, the business community at a seminar in Dhaka said they stood firm on their earlier demand for multiple VAT rates. Finance minister Abul Maal Abdul Muhith reiterated his stance to impose single rate VAT under the new law. He, however, said that there was still scope for discussion with the business community over the issue and in next two budget preparations it could be discussed. The National Board of Revenue organised the seminar to create awareness among the business people on the new VAT act which was approved by the parliament in 2012.
IMF has been putting pressure on the government to keep the uniform 15 per cent VAT rate in the country as a condition for releasing the US$ 1 billion extended credit facility. After holding a meeting with the visiting IMF delegation, Muhith on Monday told that there would be a single VAT rate in the country. At the seminar, he also alleged that the concept of the businessmen in the country about VAT was not clear and accurate and said that 15 per cent VAT was supposed to be problem-free if the traders maintained proper accounts on the prices of input credit and value addition. ‘The difference between the government and businessmen on the issue should have been adjusted before the implementation of the act,’ the Federation of Bangladesh Chambers of Commerce and Industry president Kazi Akram Uddin Ahmed said. The government still has two budget sessions in hand to adjust the issue, he said. ‘I believe that the government prefers single VAT rate to please the IMF and hope the government will move back from the position,’ he said.
A decision should be taken to protect the interests of both the sides—the government and the business community, he said. Large VAT payers may not face any problem regarding 15 per cent VAT but small businesses will not be able to cope with the excessive tax, he added. Foreign Investors’ Chamber of Commerce and Industry in Bangladesh president Rupali Chowdhury said that investors would lose competitiveness in markets with India and other Asian Countries if the VAT is imposed at high rate. Asian countries including India are the main competitors of local entrepreneurs, she added. Marico Bangladesh finance and corporate affairs director Iqbal Chowdhury said that the government should reduce VAT rate and expand VAT net to compensate the revenue losses. NBR chairman Md Nojibur Rahman said that the revenue board would ensure the best services for the taxpayers through building mutual trust and confidence. ‘We want to see the business people as ambassadors of the revenue board,’ he said. NBR member (VAT policy) Jahangir Hossain said that taxpayers would get hassle-free services after implementing the new law as they will not need to visit VAT offices for any services. He presented the advantages of the new VAT act and said that businesses would be able to get services online. Large Taxpayers Unit (VAT) commissioner Shahnaz Parveen and director of VAT Online Project Rezaul Hasan, among others, were present at the seminar.
- See more at: http://newagebd.net/102085/muhith-businesses-on-opposite-stance-over-vat-rates/#sthash.ZRFxCHyU.dpuf
