businessmen seek multiple rates of VAT, it’s not a global practice. That’s why we plan to introduce a single rate of VAT,” he told function. The finance minister also said the single VAT rate would be introduced through discussions with the businessmen. Muhith also said the ceiling of VAT-free annual turnover will be increased to Tk 30 lakh from existing Tk 24 lakh responding the demand of the businessmen. He said VAT has been a big source of the government’s revenue income, but the current VAT system is not transparent and the new law will be implemented to make the VAT system more effective. Justifying the government’s decision to introduce a single-rate VAT regime, Muhith said: “If the rate is single, it will yield lot of advantages. We can maintain the inventory easily as to how much money is coming from which source.” Muhith said evading tax is an old culture in Bangladesh since only 11-12 percent of national income comes from revenue, which is 14 percent in India and 32-34 percent in the developed nations. “The businessmen will help in implementing the new VAT law, but they deserve good service and opportunity, we have to save our businessmen and treat feel them as friends,” the minister added. Chairman of the National Board of revenue (NBR) Md. Najibur Rahman presided over the seminar where FBCCI President Qazi Akram Uddin Ahmed, NBR Member (VAT Policy) Barrister Jahangir Hossain were also present, among others. Donor agencies including the International Monetary Fund (IMF) have been pushing the government for a single-rate VAT at 15 percent. But the businessmen were demanding multiple rates. A new VAT law was enacted in parliament in November 2012 to introduce a single VAT rate, but the law could not be implemented amid opposition from the business community.
Thursday, March 12, 2015
Single VAT rate from next fiscal: Muhith Finance Minister AMA Muhith on Wednesday said the government will introduce a single rate of value added tax (VAT) from:Daily Sun
businessmen seek multiple rates of VAT, it’s not a global practice. That’s why we plan to introduce a single rate of VAT,” he told function. The finance minister also said the single VAT rate would be introduced through discussions with the businessmen. Muhith also said the ceiling of VAT-free annual turnover will be increased to Tk 30 lakh from existing Tk 24 lakh responding the demand of the businessmen. He said VAT has been a big source of the government’s revenue income, but the current VAT system is not transparent and the new law will be implemented to make the VAT system more effective. Justifying the government’s decision to introduce a single-rate VAT regime, Muhith said: “If the rate is single, it will yield lot of advantages. We can maintain the inventory easily as to how much money is coming from which source.” Muhith said evading tax is an old culture in Bangladesh since only 11-12 percent of national income comes from revenue, which is 14 percent in India and 32-34 percent in the developed nations. “The businessmen will help in implementing the new VAT law, but they deserve good service and opportunity, we have to save our businessmen and treat feel them as friends,” the minister added. Chairman of the National Board of revenue (NBR) Md. Najibur Rahman presided over the seminar where FBCCI President Qazi Akram Uddin Ahmed, NBR Member (VAT Policy) Barrister Jahangir Hossain were also present, among others. Donor agencies including the International Monetary Fund (IMF) have been pushing the government for a single-rate VAT at 15 percent. But the businessmen were demanding multiple rates. A new VAT law was enacted in parliament in November 2012 to introduce a single VAT rate, but the law could not be implemented amid opposition from the business community.
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