DHAKA: Bangladesh’s State Minister of finance MA Mannan said that there is no possibility to defer implementation of the new VAT law from July 1 next.
“We will implement the new VAT law this time,” he said categorically, addressing a workshop on roadmap to ensure compliance with the new VAT law.
Foreign Investors’ Chamber of Commerce and Industry (FICCI) and the VAT online project of the National Board of Revenue (NBR) jointly organised the day-long workshop at a city hotel to build awareness about the new VAT and Supplementary Duty (SD) Act – 2012. He said the government officials and businesses will have to abide by the VAT law enacted by the parliament.
He suggested the revenue authority to enforce the new law to benefit both the people and the businesses.
FICCI president Rupali Chowdhury said the existing VAT law, 1991 has turned into a complicated one due to the incorporation of so many special orders, statutory regulatory orders (SROs) and other government orders as well as expansion of the VAT net.
She appreciated the courageous steps taken by the government to revise the VAT laws in commensurate with the business development. She placed tax-related proposals for consideration by the government, including settlement of long-pending issue of investing gratuity fund in the government saving certificates.
Few other proposals included the withdrawal of tax at source on income of provident fund, gratuity and workers’ profit fund, re-introduction of earlier provision of minimum tax, reduction of tax deduction from royalty and technical knowhow fees, tax-exemption for workers’ participation fund and considering the transaction value for customs assessment purpose to avoid over valuation of imported products.
Jamil Osman, executive director of FICCI, delivered welcome speech at the inaugural session while Kevin Lyon, vice-president of FICCI and president of Chevron Bangladesh, delivered vote of thanks.
Speaking at the inaugural session, NBR member (VAT policy) Barrister Jahangir Hossain said three wings of the NBR will implement the new laws on income tax, customs and VAT. “Some unscrupulous people are creating obstacles to smooth implementation of the new VAT law. We have to work together to face the challenge,” he said.
A very dynamic tax system will be established after implementation of the new VAT law and it would be a paradigm shift, he added.
Three technical sessions were held in the workshop, chaired separately by Rezaul Hasan, Member, Customs & VAT, Administration & Director, VAT Online Project, NBR; Barrister Jahangir Hossain, Member, VAT Policy, NBR; and Md Nooruddin Chowdhury, Country Manager, DHL Global Forwarding (BD) Ltd & Executive Committee Member of FICCI.
Abdul Khalek, Director & CFO, Berger Paints Bangladesh Ltd, presented a paper on “adoption of the changes in new VAT laws in business planning and operations.”
Md. Zakir Hossain, Additional Commissioner & Deputy Project Director, VAT Online Project, presented a paper on “online procedure of new VAT system.”
Dr. Nahida Faridy, Additional Commissioner, VAT, Customs, Excise & VAT Commissionerate, Dhaka (South), presented a paper on “the rights & responsibilities of VAT payers.” This session discussed the rights and responsibilities of VAT payers in the context of new VAT laws.
