FBCCI urges NBR to lower VAT to 7pc from 15pc at retail level

Value Added Tax and Supplementary Duty Act, 2012 to be effective from July 1

The Federation of Chamber of Commerce and Industry president Abdul Matlub Ahmad has urged the National Board of Revenue (NBR) to reduce the VAT rate at retail level from 15 per cent to 7 per cent from July 1st.

FBCCI president said this at the seminar on building awareness among the taxpayers on Value Added Tax and Supplementary Duty Act, 2012 and its implementation, which was held at the RAOWA Convention Hall in the capital yesterday.
The objective of the seminar was to build awareness of the taxpayers regarding the law that will be implemented from July 1. According to NBR, the law is entirely prepared for providing the services through online to the taxpayers. 
Speaking at the seminar, FBCCI president also said that VAT online paying method is one way of removing the hassle of the taxpayers. 
He also made a proposal to the NBR Chairman Nojibur Rahman to establish a hotline cell, so that any FBCCI representative can ask for any query anytime to NBR.    
At the seminar, Abdul Matlub Ahmad has demanded to provide the Electronic Cash Register (ECR) and Point of Sale (POS) machines at free of cost  among the micro, small and medium-sized enterprises (SMEs) businesses from NBR. 
At the beginning of the seminar, keynote speaker, project director of VAT online project Rezaul Hasan demonstrated the benefits and comparison among the new VAT law and its system. 
Throughout the programme, Rezaul Hasan elaborated and said this new system will completely conduct through online where no price provisions are to be determined by the NBR.
The keynote speaker also added that this law is entirely for facilitating the small business owners. If the annual turnover of a business is below Tk 30 Lakh, no tax will be imposed.
A company may have several branches, but the company will be able to operate all the activities with only one account under the new law of VAT, keynote speaker informed.        
At the second session of the programme were participated by the stakeholders and conducted by Barrister Jahangir Hossain, NBR member of VAT-Policy.      
This new system of VAT law has the capacity to correct the false information up to four years of the taxpayers, Barrister Jahangir Hossain said when Shafiul Hasan asked whether there is a chance of resubmission of false information or not.
When a question was raised that how the price of a product would be fixed as this law has no provision of price determination of any product, Jahangir Hossain replied MultiNational Corporations determines their product price and local companies can also determine their product price, but if the difference is too vague, automatic software in the system will easily detect the odds.    
This law was prepared and implemented in such a way that it can adopt the inclusive fiscal law, except basic food, healthcare and education, those items were  kept outside of  released from it, Jahangir Hossain informed.
Jahangir Hossain also urged everyone to come out from the exemption culture. 
He said this culture is depriving government of Tk 50,000 crore or 2.25 per cent of the entire GDP in revenue collection. According to the information of NBR, GDP of Bangladesh is Tk 20,000 lakh crore, where tax GDP ratio is 10 per cent and tax budget is Tk 2 lakh and 3 thousand. 20 per cent revenue is contributed by SMEs, so it generates a huge profit for the economy.
While speaking in the programme, NBR Chairman Nojibur Rahman the objective of this law is not to impose VAT only on people living in urban areas, but to expand the taxnet among the eligible VAT payers in the entire country. 
The NBR chairman has also informed that three feedback emails of VAT, customs and income tax have already been created to provide answers to all types of queries, suggestions and allegations online system. 
With the creation of this law, the NBR officials expect that all the small organisations would come under the ECR machine system to make their businesses more transparent.  
NBR is moving forward with a slogan-- “The new law is in the country, VAT will be online”.
Previous, VAT law was first established in 1991 and for last 26 years it has been modified several times to facilitate business community.   

 

FBCCI urges NBR to lower VAT to 7pc from 15pc at retail level

Value Added Tax and Supplementary Duty Act, 2012 to be effective from July 1

The Federation of Chamber of Commerce and Industry president Abdul Matlub Ahmad has urged the National Board of Revenue (NBR) to reduce the VAT rate at retail level from 15 per cent to 7 per cent from July 1st. FBCCI president said this at the seminar on building awareness among the taxpayers on Value Added Tax and Supplementary Duty Act, 2012 and its implementation,which was held at the RAOWA Convention Hall in thecapital yesterday. The objective of the seminar was to build awareness of the taxpayers regarding the law that will be implemented from July 1. According to NBR, the law is entirely prepared for providing the services through online to the taxpayers. Speaking at the seminar, FBCCI president also said that VAT online paying method is one way of removing the hassle of the taxpayers. He also made a proposal to the NBR Chairman Nojibur Rahman to establish a hotline cell, so that any FBCCI representative can ask for any query anytime to NBR. At the seminar, Abdul Matlub Ahmad has demanded to provide the Electronic Cash Register (ECR) and Point of Sale (POS) machines at free of cost among the micro, small and medium-sized enterprises (SMEs) businesses from NBR. At the beginning of the seminar, keynote speaker, project director of VAT online project Rezaul Hasan demonstrated the benefits and comparison among the new VAT law and its system. Throughout the programme, Rezaul Hasan elaborated and said this new system will completely conduct through online where no price provisions are to be determined by the NBR. The keynote speaker also added that this law is entirely for facilitating the small business owners. If the annual turnover of a business is below Tk 30 Lakh, no tax will be imposed. A company may have several branches, but the company will be able to operate all the activities with only one account under the new law of VAT, keynote speaker informed. At the second session of the programme were participated by the stakeholders and conducted by Barrister Jahangir Hossain, NBR member of VAT-Policy. This new system of VAT law has the capacity to correctthe false information up to four years of the taxpayers, Barrister Jahangir Hossain said when Shafiul Hasan asked whether there is a chance of resubmission of false information or not. When a question was raised that how the price of a product would be fixed as this law has no provision of price determination of any product, Jahangir Hossain replied MultiNational Corporations determines their product price and local companies can also determine their product price, but if the difference is too vague, automatic software in the system will easily detect the odds. This law was prepared and implemented insuch a way that it can adopt the inclusive fiscal law,except basic food, healthcare and education, thoseitems were kept outside of released from it, Jahangir Hossain informed. Jahangir Hossain also urged everyone to come out from the exemption culture. He said this culture is depriving government ofTk 50,000 crore or 2.25 per cent of the entire GDP in revenue collection. According to the information of NBR, GDP of Bangladesh is Tk 20,000 lakh crore, where tax GDP ratio is 10 per cent and tax budget is Tk 2 lakh and 3 thousand. 20 per cent revenue is contributed by SMEs, so it generates a huge profit for the economy. While speaking in the programme, NBR ChairmanNojibur Rahman the objective of this law is not toimpose VAT only on people living in urban areas, but to expand the taxnet among the eligible VAT payers in theentire country. The NBR chairman has also informed that three feedback emails of VAT, customs and income tax have already been created to provide answers to all types of queries, suggestions and allegations online system. With the creation of this law, the NBR officials expectthat all the small organisations would come underthe ECR machine system to make their businesses more transparent. NBR is moving forward with a slogan-- The new law is in the country, VAT will be online. Previous, VAT law was first established in 1991 and for last 26 years it has been modified several times to facilitate business community.