FBCCI chief suggests colleting VAT through trade bodies

President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has suggested the government collecting the value added tax (VAT) through different trade bodies, reports BSS.
“The government can engage different chambers and associations in collecting the VAT and transfer it to the tax authorities accordingly,” Abdul Matlub Ahmad told the news agency in an interview on the issues related to VAT.
He proposes that the chambers and associations concerned will keep VAT machines to collect the VAT from the businessmen every working day and reimburse the money to the tax authorities at the end of each month.
Ahmad said the VAT collection by engaging trade bodies would help increase revenue earnings, by making chambers and associations more accountable for colleting the VAT timely and regularly.
Recommending that the rate of the identical VAT should not be more than 7 per cent, the FBCCI chief urged the government to consider the VAT rate while implementing the new VAT law from July this year.
“The proposed 15 per cent VAT sounds okay for some cases, but it would not be reasonable if the same amount of VAT is charged for just invoicing”, Ahmad said, cautioning that such move would only put inflationary pressure on the economy.
He welcomed the online VAT and tax collection system and said the system would expedite the revenue collection and make the tax-payment system hassle-free.
Ahmad, however, advised the tax authorities to allow small and new businesses at least four years to adopt with the new system.
Referring to the FBCCI’s recommendations for the next budget regarding VAT, he urged the government for fixing the VAT-free turnover ceiling at Tk 36 lakh and collecting 3 per cent VAT only on the production level for the businesses with the annual turnover between Tk 36 lakh and Tk 1.5 crore.
Apart from the production level, the VAT for all businesses should be fixed at 2 per cent, the FBCCI president suggested.

FBCCI chief suggests colleting VAT through trade bodies

President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has suggested the government collecting the value added tax (VAT) through different trade bodies, reports BSS. The government can engage different chambers and associations in collecting the VAT and transfer it to the tax authorities accordingly, Abdul Matlub Ahmad told the news agency in an interview on the issues related to VAT. He proposes that the chambers and associations concerned will keep VAT machines to collect the VAT from the businessmen every working day and reimburse the money to the tax authorities at the end of each month. Ahmad said the VAT collection by engaging trade bodies would help increase revenue earnings, by making chambers and associations more accountable for colleting the VAT timely and regularly. Recommending that the rate of the identical VAT should not be more than 7 per cent, the FBCCI chief urged the government to consider the VAT rate while implementing the new VAT law from July this year. The proposed 15 per cent VAT sounds okay for some cases, but it would not be reasonable if the same amount of VAT is charged for just invoicing, Ahmad said, cautioning that such move would only put inflationary pressure on the economy. He welcomed the online VAT and tax collection system and said the system would expedite the revenue collection and make the tax-payment system hassle-free. Ahmad, however, advised the tax authorities to allow small and new businesses at least four years to adopt with the new system. Referring to the FBCCIs recommendations for the next budget regarding VAT, he urged the government for fixing the VAT-free turnover ceiling at Tk 36 lakh and collecting 3 per cent VAT only on the production level for the businesses with the annual turnover between Tk 36 lakh and Tk 1.5 crore. Apart from the production level, the VAT for all businesses should be fixed at 2 per cent, the FBCCI president suggested.