Tuesday, June 2, 2020 | ePaper

VAT law should be business friendly

  • Print
The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) in a recent letter to the National Board of Revenue (NBR) said the proposed VAT law of NBR may fuel inflation and create unrest in the society if implemented from July 1 without adequate readiness. Regarding the matter, NBR and the FBCCI are at loggerheads though NBR assured of taking enough preparation. But past experience leaves the business community in confusion that delayed its implementation for four years already.
Initially, there was a single VAT rate, with which the FBCCI has registered its objection. The NBR said that they are making the VAT law in line with their demand by incorporating multiple VAT rate instead of flat rate. Framed on the prescription of the International Monetary Fund, the new VAT law aims to increase revenue collection and establish transparency and accountability in a country that has one of the lowest tax-GDP ratios (about 9 percent) in the world.
VAT, a type of consumption tax, is the biggest source of revenue for the government, followed by income tax and customs tariff. The new law originally envisaged a uniform 15 percent VAT on goods and services, doing away with the multiple rates under the existing law -- a change that sparked protest from businesses, particularly from the FBCCI on grounds that it would hurt small and medium businesses and stoke inflation. In the face of protests, the government deferred enforcement of the new VAT system law thrice, the latest being in June 2017, when it announced at the eleventh hour of the postponement by two years.
The businesses agreed in principle with the NBR proposal of multiple VAT rates: 5 percent, 7.5 percent, 10 percent and 15 percent. The meeting also decided to increase the VAT-free annual turnover threshold to Tk 50 lakh from the existing 36 lakh. It agreed to increase annual turnover limit to Tk 3 crore from Tk 80 lakh and hike turnover tax to 4 percent from the present 3 percnt.
We believe NBR and FBCCI should come out of the loggerhead over new VAT implementation for the betterment of business and the citizens.

More News For this Category

Save local fish species and biodiversity

INDISCRIMINATE catching of fish fry in the haors of Sylhet region, including the protected Tanguar haor in Sunamganj has been posing a serious threat to the area's ecosystem. Due to

Inadequate Covid testing facilities may deteriorate the pandemic situation

THE overwhelming demand for Covid-19 tests has rendered the designated private facilities also unable to offer the tests to test seekers. Now 50 labs, including 17 private ones, are doing

Blame Game Between The Superpowers On Corona

The present trade deficit between the two current economic superpowers of the world, USA and China, looks far from being healthy. For obvious reasons President Trump did not want to

Plastic Pollution An Extreme Disaster In The Ocean

Plastic is much more durable than paper or cloth. That's why this product is now everyone's choice for wrapping different products. It has quickly gained popularity due to its relatively

Increasing transport fare cannot be justified while people are struggling hard

AMID rising infection and death due to Covid-19, the government mindlessly eased the clampdown in excuse of protecting the corruption-riddled economy, though millions of dollars poured for social safety net

Readers’ Forum

Handshake, Hugging Are On The Way To FarewellHandshake and hugging are generally greetings of gentleman gesture at the end of meeting, gossiping, farewell, birthday party, congratulations, expressing gratitude, as a

Cooperatives Still Vital In Corona Infected Agro-Economy

During British rule, the farmers were exploited by zamindar and village heads or influents. In order to save the farmers from poverty the cooperatives started its journey by proclamation cooperative

UN@75 The Future We Want

Crises make us think smaller. When everything is uncertain, we turn inward: to our families, our communities, the immediate needs around us. We focus on the essential and the immediate;

If plasma therapy is hopeful against Covid-19, experts should say so

MEDICAL experts have urged the government to undertake a national programme to expand the scope of providing plasma therapy for treating Covid-19 patients as the method has been gaining

Not only Libya, but many other countries also treat our migrant workers brutally

MEDIA reports on Saturday said Bangladesh government has sought justice from the internationally recognized Libyan government for the killing of 26 Bangladeshi nationals and the infliction of fatal injuries