Aiming to make Value Added Tax (VAT) system simpler, well-regulated, taxpayer-friendly, the Government of Bangladesh (GoB) approved the VAT and Supplementary Duty (SD) Act 2012.
To be implemented from July 2017, the new VAT law has become a subject of bewilderment amongst the businessmen in Bangladesh.
“There are a lot of misapprehensions and controversies among the business community,” said Salman F Rahman, adviser of Awami League President Sheikh Hasina for private sector development affairs, during an event hosted by Large Taxpayers Unit of the revenue authority.
He further said that initially the law was premeditated to be implemented from July 2015 but the government delayed it due to the demands put forward by the business community. In the intervening time, the National Board of Revenue organized several training sessions and workshops on the matter.
“However I feel that there must a proper understanding of this law amid business people. This law will come in effect from July this year — there is no uncertainty about it. In so far as the business community is concerned, we have duly accepted it and we look forward to it as well,” Rahman asserted at the event.
He went on to propose the revenue authority to implement measures such that the transition from the existing VAT Act 1991 to the new VAT and Supplementary Duty Act goes on smoothly.
“Undoubtedly, people will face some manageable problems during the transition,” he further added, while requesting the NBR’s field offices to extend mutual aid to businesses so that the law can be implemented easily.
Salman F Rahman, who is also the vice-chairman of Beximco Group, stated “The new law is more favorable to big companies as compared to the existing one. One of the key objectives of this new VAT law is to boost the current VAT net.”
At present, out of 8 lakh registered firms only 35,000 businesses submit VAT returns, as stated by the National Board of Revenue (NBR).