DHAKA: Businesses demanded turnover-tax limit raised to Tk12 million and VAT-exemption ceiling up to Tk5.0 million in the new law scheduled to be enforced on July 01.
According to details, in the new VAT and Supplementary Duty Act 2012, small businesses having annual sales up to Tk3.0 million are exempt from paying VAT while the turnover-tax limit is set at Tk8.0 million.
Dhaka Chamber of Commerce and Industry (DCCI) leaders placed the suggestions with the National Board Revenue (NBR) at a meeting, as the government so far stuck to its decision to push the law through with the set ceilings.
DCCI president Abul Kasem Khan proposed that the NBR honour all taxpayers with tax cards by categorising it on the basis of rates of tax payment.
Tax card can be converted to electronic smartcard that could have all updated information of taxpayers, he added. The DCCI president also proposed introduction of VAT smartcard for encouraging the businesses to deposit VAT properly.
The NBR chairman said the DCCI’s proposals will be placed before the finance minister for his consideration. He sought cooperation of DCCI and expects the businesses would be tax- compliant.
Citing some examples, the DCCI president reiterated their demand for lowering VAT rate to 7.0 per cent from 15 per cent uniform rate stipulated in the new law.
Standard VAT (goods and service tax) is 6.0 per cent in Malaysia while it is 7.0 per cent in Singapore, 10 per cent in Vietnam and Indonesia each, 5.0 per cent in Nigeria and 12 per cent in the Philippine, the DCCI leader said.
He said the government can distribute Electronic Cash Register (ECR) and Point of Sales (POS) to the businesses at its own cost to thwart VAT evasion and encourage businesses. He also proposed curtailing judicial power of the VAT officials in the new VAT law and ensuring a taxpayer-friendly environment.
Kamrul Islam, senior vice-president of DCCI, said there is some mistrust between taxmen and taxpayers which should be removed.
The NBR chairman sought DCCI’s cooperation in implementing the new VAT law successfully by effective campaigning. He said a countdown device would be installed soon in all VAT offices across the country for launching the VAT law from July 1, 2017.
He also invited the DCCI president to join the conference of Deputy Commissioners of Taxes (DCTs) on February 09 to exchange views with the field-level officers from across the country.
