Space For Rent

Space For Rent
Monday, March 9, 2015, Falgun 25, 1421 BS, Jamadi ul Awwal 17, 1436 Hijr

FBCCI wants multiple rates for VAT
Published : Monday, 9 March, 2015,  Time : 12:00 AM,  View Count : 15

Staff Correspondent
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Sunday demanded introduction of multiple rates for VAT instead of a unified flat rate.
The VAT stands for Value Added Tax, which is imposed on goods and services at import stage, manufacturing, wholesale and retails levels.
President of the country's apex trade body Kazi Akram Uddin Ahmed placed a set of recommendations regarding VAT and other issues at a meeting with Finance Minister A M A Muhith at his secretariat office in the city.
Briefing reporters after the meeting, the FBCCI president said that the Finance Minister had agreed on their proposals.
A government review panel in January suggested the revenue authorities impose multiple VAT rates, instead of the universal 15 per cent in all areas, to help flourish micro and small businesses and protect consumers.
The review panel for the law also suggested raising the ceiling of VAT turnover to Tk 36 lakh from Tk 24 lakh to facilitate growth of small and cottage industries, rural enterprises and reduce hassles of retailers and small businesses.
About the implementation of the multiple VAT rates, the FBCCI President said that the Finance Minister told him that implementation of the multiple VAT rates would not take place immediately. Rather, it would be implemented in phases through budget.
The Finance Minister also assured that the VAT Act would gradually be implemented in each budget from the fiscal 2015-16, he added.
International Monetary Fund (IMF) is opposing the multiple VAT system in its reform suggestions.
The nine-member panel, headed by a former National Board of Revenue member, put forward its recommendations to Finance Minister AMA Muhith in early January.
The NBR formed the committee with representatives from the business community and the government, as the apex trade body demanded review of the new law before its implementation.
The government had formed the nine-member panel including representatives of business community, headed by a former National Board of Revenue member to review the VAT and other related issues.
The new VAT and Supplementary Duty Act 2012 is expected to be fully effective from July next year. It will replace the existing VAT Act 1991.
The new law, framed at the prescription of the International Monetary Fund, will end the scope for package VAT and VAT determined on a truncated basis and tariff value system that various sectors now enjoy.

Editor : Iqbal Sobhan Chowdhury
Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka. Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000. Phone :9586651-58. Fax: 9586659-60, Advertisemnet: 9513663, E-mail: [email protected], [email protected], [email protected]