Dhaka Chamber of Commerce and Industry (DCCI) yesterday demanded introduction of multiple value added tax (VAT) rates by amending the new VAT law.

The trade body urged the government to introduce three-tire VAT rates instated of the 15 per cent rate.

DCCI made the demand at a press conference at DCCI auditorium in the capital. DCCI President Osama Taseer presided over the press conference while DCCI Senior Vice President Waqar Ahmad Choudhury and its Acting Secretary Joynal Abedin, among others, were present.

Osama Taseer said if the government reduces the VAT rate, the number of VAT payers will increase. “Out of the around eight lakh registered VAT payers, only 37 thousand pay their VAT regularly,” he added.

The Value Added Tax (VAT) Supplementary Duty Act, 2012 will come into force from July this year. In order to make the law business friendly, the government has formed a committee to amend the law.

Osama Taseer said the existing corporate tax is higher than the Asian and the global average which is a critical challenge for encouraging new local and foreign investment in Bangladesh.