Online VAT return submission begins in November
UNB
The online submission of Value Added Tax (VAT) return and payment will start in November in a move to provide the taxpayers a hassle-free environment and boost the revenue collection, reports UNB.
Initially, the system will run for six months on a pilot basis and later itll be made permanent, a senior VAT official told the news agency.
At the preliminary stage, he said, the companies under the Large Taxpayers Unit (LTU) can submit their VAT returns through online.
After three months, Dhaka East Customs, Excise and VAT Commissionarate will be linked with. Gradually, all the business entities will be brought under the online system, he said.
The official, however, could not say anything about the fixed date for the introduction of online VAT submission system. The date is yet to be decided, he said.
With this system, the taxpayers will not require to go to VAT offices for submitting their VAT returns as they will be able to do it from anywhere.
As the National Payment Gateway under the Bangladesh Bank is yet to start work, the taxpayers will not be able to pay their VAT online.
They have to go to scheduled banks for the pay order. During the VAT submission process, they will mention the pay order number.
According to the NBR sources, all the accounting software of the listed companies will be linked to the server of the VAT online.
So far, according to the available data, some 56,874 business entities and 139 companies under the LTU have taken electronic business identification number (e-BIN), which is mandatory to submit VAT through online.
The VAT automation system is being introduced under the VAT and Supplementary Duty project worth Tk 551.59 crore. The World Bank is financing Tk 449.78 crore and the remaining cost is coming from local sources.
After the full automation, the taxpayers will be able to pay their VAT using ATM cards, mobile banking and e-banking services.
A senior official of the NBR related to the VAT wing told the new agency that the revenue collecting authority now wants to make the payment of taxes easier for the taxpayers.
Taxpayers will be encouraged if they found the payment system easier for them and we want to ensure the convenient system for them, he said.
He hoped that the revenue collection from the VAT will see a significant jump in the coming fiscal years on completion of the automation of the VAT payment.
Parliament in 2012 passed the Value Added Tax and Supplementary Duty Act to automate the overall VAT administration to increase the revenue collection.
Following the initiative, the taxes authorities in 2013 took the VAT Online Project to ensure automated system.
Once implemented, the system will connect 287 VAT circle offices, 84 divisional offices, 12 commissionerates, two directorates, three appeal commissionerates and a tribunal in a single platform.
It will also integrate the Bangladesh Bank, the Office of the Comptroller and Auditor General and the income tax department of NBR with it.
Once automated, the system will substantially increase government revenue through identifying non-compliant taxpayers.
The revenue target for the NBR for the current fiscal year (2017-18) was set at Tk 248,190 crore while that of non-NBR tax revenue collection at Tk 8,662 crore and the target of non-tax revenue collection set at Tk 31,179 crore.
Of the total revenue target of NBR, Tk 91,344 crore will come from VAT while Tk 86,867 crore from income tax and corporate tax, Tk 30,153 crore from import and export duty and Tk 38,212 crore from supplementary duty.
