Businesses want continuation of package VAT in new act [ Tritiyo Matra News ]

Businesses want continuation of package VAT in new act

Local February 23, 2016

Trade leaders from various sectors on Monday demanded the National Board of Revenue should continue package value-added tax system for small and medium traders in new VAT act to be implemented from July this year.
At a views exchange meeting on the new VAT and Supplementary Act-2012, they also alleged that VAT officials had been denying accepting package VAT since January though the provision is stipulated to be scrapped from July.
Traders also demanded for creating a hassle-free environment for payment of VAT and keeping the provision of multiple rates of VAT in the new law.
The Federation of Bangladesh Chambers of Commerce and Industry and the revenue board jointly organised the meeting at FBCCI conference room with its president Abdul Matlub Ahmad in the chair.
NBR member (VAT policy) Jahangir Hossain attended the meeting as chief guest.
SME Owners’ Association president Ali Zaman said that withdrawal of package VAT from July was the main concern for small and medium traders in coming days as they have to pay 4 per cent VAT on transactions.
He also demanded for withdrawal of 15 per cent VAT on different types of licence fees including trade licence.
Under the new act, a single 15 per cent VAT will be introduced for all except businesses having annual turnover below Tk 80 lakh. There will be 3 per cent turnover of VAT for traders having turnover ranging from Tk 30 lakh to Tk 80 lakh while traders having turnover below Tk 30 lakh will be exempted from VAT.
Bangladesh Dokan Malik Samity president SA Kader Keron urged the NBR for withdrawal of notices rejecting package VAT and claiming VAT at 4 per cent.
FBCCI adviser Manzur Ahmed said that there were multiple rates of VAT globally except few countries. Multiple VAT rates should also be in place in the country, he said.
Leaders from Bangladesh Mosaic Merchant and Tiles Dealers Association, Bangladesh Auto Re-Rolling and Steel Mills Association, Auto-parts Tyre Tube Mer chants’ Association, Automobile Workshop Owners’ Samity, Bangladesh Laminating Jute Bag Manufacturers’ Association, Electronic Traders’ Association of Bangladesh, Bangladesh Iron Steel importers’ Association also demanded for continuation of package VAT for their sector as they could not realise regular VAT from consumers.
Nilphamari Chamber of Commerce and Industry president SM Shafiqul Alam Dablu argued that 4 per cent VAT would be very high for most of the traders in district level and package VAT at different slabs will be perfect for them.
Representative from Bangladesh Agriculture Machinery Merchants’ Association alleged that VAT officials were not accepting package VAT though the system is still in place.
There is also discrimination on enforcement of the package VAT as some Vat officials were not accepting package VAT from many traders while some were accepting from others in the same area at Nawabpur in Dhaka, he said.
Real Estate and Housing Association of Bangladesh (RAHAB) vice president Liaquat Ali Bhuiyan demanded the government to reduce the VAT rate to 1.5 per cent from 3.0 per cent for the sector for next five years.
NBR member (VAT policy) Jahangir Hossain described the positive sides of the new act and assured traders of ending harassment in coming days as all procedures including payment of VAT will be done online under the new law.
The new VAT law will also reduce overall tax burden as traders will be able to take input credit on previously paid VAT.
FBCCI president Matlub said that businesses have to pay tax for the development of the country but there must be hassle-free environment for them.
He said that they had recently met the finance minister and expressed their concern over high rate of VAT at 15 per cent in the new law.
FBCCI vice-president Mahbubul Alam, Light Engineering Association president Abdur Razzaque, Bangladesh Knitwear Manufacturers and Exporters Association former vice-president Mohammad Hatem and Dhaka Chamber of Commerce and Industry former director Abdus Salam, among others, spoke at the meeting.