DCCI urges for 7pc VAT instead of 15pc
STAFF REPORTER
3DCCI President Abul Kasem Khan proposed for 7 per cent VAT rate for all instead of existing 15 per cent VAT. Referring to 7 per cent VAT, he said in Malaysia their standard VAT is 6 per cent, in Singapore it is 7 per cent, in Indonesia it is 10 per cent, in Nigeria it is 5 per cent and in the Philippines it is 12 per cent. He also proposed for increasing the limit of turnover tax to Tk 10.2 million from the existing Tk 8 million.
Khan made the remark while the Board of Directors of Dhaka Chamber of Commerce Industry (DCCI) called on Chairman of National Board of Revenue (NBR) Md Nojibur Rahman at NBR Bhaban in the capital yesterday.
DCCI President Abul Kasem Khan said that to increase governments revenue NBR has to widen the tax net. He also proposed to give Tax Card to all tax payers as an electronic smart card.
For the Retailers, Abul Kasem Khan proposed No Vat up to Tk 5 million turn over yearly and 3 per cent VAT for the yearly turnover up to Tk 10.2 million. He said section 83, 90 and 91 of VAT Act 2012 should be revised with the consultation with the private sector. He said tax-GDP ratio is 10.3 per cent in Bangladesh, 19.1 per cent in Vietnam, 23.5 per cent in Nepal, 16 per cent in Thailand, 13.6 per cent in Philippines and 34 per cent in OECD countries.
He said to meet the extra expenditure in the Budget and implementation of ADP tax-GDP ratio in Bangladesh for the next two years should be of 15 per cent. He also said that only 30,000 BIN holders out of 8,40,000 submit their returns. He also proposed for VAT Smart Card to encourage VAT payers.
Chairman of NBR Md. Nojibur Rahman said NBR has announced February month as the month of partnership. He said that government will implement new VAT Act 2012 from the 1st July, 2017 and he sought all cooperation from the business community including DCCI to make it popular among the businessmen. He informed, NBR gave recognition to top ten VAT payers of the recently ended Dhaka international Trade Fair. He also informed that NBR will organize a National Conference inviting all Deputy Commissioner of Taxes on February 9, 2017 at citys Officers Club. He invited DCCI to participate in that conference. To create a tax-friendly environment in the country he sought cooperation from the business community.
DCCI Senior Vice President Kamrul Islam, FCA said that we have to increase confidence and trust among the tax officers and the tax payers. Member of NBR Md Farid Uddin said from NBR we should interact more with micro level like product-specific associations for increasing VAT collection and building confidence. Member of NBR Shahriar Mollah said NBR will soon digitize bond management system which will reduce its misuse.
DCCI Vice President Hossain A Sikder, Directors Asif A Chowdhury, Hossain Akhtar, Humayun Rashid, Imran Ahmed, K Atique-e-Rabbani, FCA, Kh Rashedul Ahsan, Mamun Akbar, Md Alauddin Malik, Riyadh Hossain, former Sr. Vice President Haider Ahmed Khan, FCA and Secretary General AHM Rezaul Kabir were also present during the meeting.
