• Wednesday, Aug 17, 2022
  • Last Update : 04:24 pm

Business: Govt won’t succeed in new VAT law

  • Published at 11:45 pm April 3rd, 2017
  • Last updated at 11:53 pm April 3rd, 2017
Business: Govt won’t succeed in new VAT law
If the new value-added tax law comes into effect from July 1 without consent from business community, the government may have to reverse its decision, business leaders warned. “Implementation of the new VAT law without getting business community involved will be suicidal,” said Md Shafiul Islam Mohiuddin, First Senior Vice-President Federation of Bangladesh Chambers of Commerce and Industry. Md Abdur Razzak, President of Bangladesh Engineering Industry Owners Association, said they had demanded multiple VAT rates instead of 15% flat rate. “We have sat with National Board of Revenue 24 times in the last three years, but they did not pay heed to our demand,” he said. “They (NBR) seem to go to implement the law without our consent. But they may have to take U-turn as happened when VAT was imposed on tuition fees,” Razzak said. In a conversation with the Dhaka Tribune recently, Finance Minister AMA Muhith said the NBR has some weaknesses in negotiating with businessmen about the new VAT law. He said: “The businessmen have agreed on new VAT law at a meeting with the NBR. But minutes later they changed their stance. This reflects the shortcomings of NBR in implementing the new law.” “This weakness should be removed.” Meanwhile, addressing at a pre-budget discussion, NBR Member (VAT Policy) Jahangir Hossain said the new VAT law is intended at ensuring better services to the taxpayers and increasing revenue collection with transparency and accountability in the process.”