Govt to continue VAT, SD Act implementation efforts

The government will continue its efforts to implement the VAT and Supplementary Duty Act, 2012. The project to implement the Act has been extended till December 2020.

The Executive Committee of the National Economic Committee (ECNEC) approved the revised project at a cost of Tk 690.13 crore yesterday, with Prime Minister Sheikh Hasina in the chair.

Briefing reporters after the meeting, planning minister AHM Mustafa Kamal said ECNEC had approved a total of 14 projects involving an outlay of Tk 6,228.49 crore. Out of the total expenditure, Tk 5,421.40 crore would come from the government exchequer, Tk 741.28 crore as project assistance, and the rest (Tk 65.81) crore from the organisation’s own funds.

There was widespread confusion over continuation of the digitisation process in the VAT system after the new VAT and Supplementary Duty Act 2012 was deferred. Enforcement of the new law, passed by Parliament in 2012, was postponed for two years.

As a result, the government decided to adopt a new strategy to implement the Act, said Mustafa Kamal.

He also alleged that the people concerned did not understand the VAT system. Consequently, the government was compelled to postpone the execution of the law by two years.

It was scheduled to come into force on July 1, 2017, but was jettisoned amid protests by businesses.

The National Board of Revenue (NBR) sent a note to the finance minister, seeking permission to continue with the VoP and amend the exiting VAT rules to ensure the continuity of digitisation work. The board apprised the finance minister of the benefits of going online in matters of VAT registration, payment, and on seven other counts.

The project cost would increase by Tk 690.13 crore to around Tk 650 crore because of the extension of the VoP project period by two years.

The board has so far spent Tk 162 crore under the VoP project. There are three international agreements and some local agreements with the VoP.  Vendors are working under the agreements involving Tk 310 crore.

The online VAT system would help the government avoid possible complexities with international development partners like the World Bank (WB) and the International Monetary Fund (IMF) and in the implementation of agreements. Both the multilateral donors were involved in the framing of the new VAT law.

The WB is the largest fund provider for the VoP. The agreement with the WB was related to the implementation of the law.

 

Govt to continue VAT, SD Act implementation efforts

The government will continue its efforts to implement the VAT and Supplementary Duty Act, 2012. The project to implement the Act has been extended till December 2020. The Executive Committee of the National Economic Committee (ECNEC) approved the revised project at a cost of Tk 690.13 crore yesterday, with Prime Minister Sheikh Hasina in the chair. Briefing reporters after the meeting, planning minister AHM Mustafa Kamal said ECNEC had approved a total of 14 projects involving an outlay of Tk 6,228.49 crore. Out of the total expenditure, Tk 5,421.40 crore would come from the government exchequer, Tk 741.28 crore as project assistance, and the rest (Tk 65.81) crore from the organisations own funds. There was widespread confusion over continuation of the digitisation process in the VAT system after the new VAT and Supplementary Duty Act 2012 was deferred. Enforcement of the new law, passed by Parliament in 2012, was postponed for two years. As a result, the government decided to adopt a new strategy to implement the Act, said Mustafa Kamal. He also alleged that the people concerned did not understand the VAT system. Consequently, the government was compelled to postpone the execution of the law by two years. It was scheduled to come into force on July 1, 2017, but was jettisoned amid protests by businesses. The National Board of Revenue (NBR) sent a note to the finance minister, seeking permission to continue with the VoP and amend the exiting VAT rules to ensure the continuity of digitisation work. The board apprised the finance minister of the benefits of going online in matters of VAT registration, payment, and on seven other counts. The project cost would increase by Tk 690.13 crore to around Tk 650 crore because of the extension of the VoP project period by two years. The board has so far spent Tk 162 crore under the VoP project. There are three international agreements and some local agreements with the VoP. Vendors are working under the agreements involving Tk 310 crore. The online VAT system would help the government avoid possible complexities with international development partners like the World Bank (WB) and the International Monetary Fund (IMF) and in the implementation of agreements. Both the multilateral donors were involved in the framing of the new VAT law. The WB is the largest fund provider for the VoP. The agreement with the WB was related to the implementation of the law.