CAB opposes 15pc flat VAT rate on all sectors

Consumers Association of Bangladesh (CAB) said new VAT Act that would come into effect from July 1 where the 15 per cent flat VAT rate for all sectors will be applicable instead of different rates is unrealistic.
The observation of CAB came at a press conference on recommendations by CAB on ensuring stable product and service quality and safe food held at Dhaka Reporters Unity (DRU) in the capital yesterday.  
CAB President Golam Rahman said the implementation of the act will put an adverse impact on inflation. Common people would lose buying capacity and trend of tax evasion would be encouraged. Dishonest traders would be benefited while common people would be affected.
Parliament passed the law on November 27, 2012. It was expected to come into effect from July 1, 2015. But the National Board of Revenue (NBR) failed to enforce the law as per the plan.
CAB President on the occasion asked the consumers not to purchase additional products in fear of increase in price of products. Traders will not hike the price if do not feel extra pressure of selling products, he said.
Golam Rahman said according to the Ministry of Commerce each daily essential product has witnessed ample storing, production and import. But before Ramadan prices of some of the products have been increased.  Price of per kg packet of salt is  between Tk 10-15, garlic prices suddenly increased and the price now is between Tk 70-80 per kg.  
Some unscrupulous traders are increasing the price through syndicate. Legal action should be taken against them.
Recommending that the Trading Corporation of Bangladesh (TCB) should sell products in larger scale, he said TCB’s product selling has positive effect in the markets.

CAB opposes 15pc flat VAT rate on all sectors

Consumers Association of Bangladesh (CAB) said new VAT Act that would come into effect from July 1 where the 15 per cent flat VAT rate for all sectors will be applicable instead of different rates is unrealistic. The observation of CAB came at a press conference on recommendations by CAB on ensuring stable product and service quality and safe food held at Dhaka Reporters Unity (DRU) in the capital yesterday. CAB President Golam Rahman said the implementation of the act will put an adverse impact on inflation. Common people would lose buying capacity and trend of tax evasion would be encouraged. Dishonest traders would be benefited while common people would be affected. Parliament passed the law on November 27, 2012. It was expected to come into effect from July 1, 2015. But the National Board of Revenue (NBR) failed to enforce the law as per the plan. CAB President on the occasion asked the consumers not to purchase additional products in fear of increase in price of products. Traders will not hike the price if do not feel extra pressure of selling products, he said. Golam Rahman said according to the Ministry of Commerce each daily essential product has witnessed ample storing, production and import. But before Ramadan prices of some of the products have been increased. Price of per kg packet of salt is between Tk 10-15, garlic prices suddenly increased and the price now is between Tk 70-80 per kg. Some unscrupulous traders are increasing the price through syndicate. Legal action should be taken against them. Recommending that the Trading Corporation of Bangladesh (TCB) should sell products in larger scale, he said TCBs product selling has positive effect in the markets.