Online payment to raise VAT�s contribution to GDP: Atiur
UNB
Bangladesh Bank Governor Atiur Rahman yesterday said once online VAT (value added tax) payment is introduced, it will increase its contribution to the countrys GDP (gross domestic product), reports UNB.
The contribution of VAT to GDP will go up to 4.7 per cent from the current rate of 3.7 per cent, he said while addressing a seminar titled: VAT e-Payment: Integration with IBAS and other Commercial Banks, organised by National Board of Revenue (NBR) at Diploma Engineers Institute in the capital.
The NBR organised the seminar in order to discuss all nitty-gritty of the new VAT payment system with all stakeholders.
The function, with NBR Chairman Nojibur Rahman in the chair, was also addressed, among others, by Banking Division secretary M Aslam Alam and controller general of accounts Abul Quasem.
Appreciating the NBR move, Atiur Rahman said the online VAT payment system will be easy and fully transparent under a rear-time settlement arrangement.
So, it will reduce the tax payers hassles in paying their tax. The taxpayers will be able to pay their tax under an automated system even from their office or home. he added.
He, however, urged the NBR and other government agencies to take initiative to involve all the banks in the online VAT payment system while under the current arrangement taxpayers can pay tax through only Bangladesh Bank and state-owned Sonali Bank.
The governor also warned the NBR and other agencies to always keep alert against cyber attack by cyber criminals on the new online VAT system.
M Aslam Alam that the cyber risk is increasing with the enhancement of digitization. So, it requires to remain alert all the times against cyber attack with updating system.
He proposed formation of a technical coordination committee comprising representatives from Bangladesh Bank, NBR, Banking Division, public and private banks and controller general of accounts office to remove all kinds of barriers legal and administrative barriers in the way of making the new system functional.
Controller General of Accounts Abul Quasem said that his office has successfully introduced the online pay fixation for the government employees within a short time after announcement of the government pay-scale.
The government passed Online VAT Act in 2012 in the parliament which is now set to be effective from July 2016 with the commencement of new fiscal year 2016-17.
With coming into effect, the law will make it mandatory for all individuals, the businesses and service sectors to pay the VAT through online instead of current manual system.
