New VAT to be implemented Jul 1

The NBR is going to implement the new VAT and Supplementary Duty Act-2012 from July 01, 2016. By that time, there will be no plan to change anything incorporated in the law.

The revenue board is unlikely to lower the 15 per cent uniform tax rate in the new VAT law despite oft-repeated demand of the business community to bring down the rate to single digit, National Board of Revenue (NBR) chief Nojibur Rahman said Thursday.

The NBR chairman told this while speaking to newsmen after a luncheon meeting of the Foreign Investors' Chamber of Commerce and Industry (FICCI) at a city hotel Thursday.

He said the revenue board is framing a transition plan for next three months before the implementation of the new VAT law.

The NBR will monitor the required changes and give special attention to implementation of the new law by replacing existing VAT law, he added.

The finance minister and the NBR chairman will hold meeting with the stakeholders including the apex chamber and other trade bodies before finalising the transition plan, he said.

On achieving the highest-ever revenue target of Tk 1.76 trillion for the current fiscal year, Mr Rahman said the NBR is reviewing the actual situation and will take steps accordingly.

Mr Rahman invited foreign investors to invest and assured them of protection of their capital.

On preparation of the next budget for fiscal year 2016-17, he said the budget process has already started and pre-budget meetings will start from March 27.

"Whatever we do, there will be win-win and mutually gainful situation," he said.

"We will come up with a budget that would be more pro-business, pro-investment, pro-development and pro-people," he said.

The NBR is going to introduce digital customs and digital tax management system to cut discretionary power of taxmen, he added.

New direct tax code and customs law are also in progress, he added.

"The new customs law is going to be placed in the forthcoming session of the parliament," he said.

Responding to queries of the FICCI members, the chairman said he would look into the issue relating to gratuity fund and ensure hassle-free tax administration.

FICCI president Rupali Chowdhury proposed the NBR to hold healthy dialogue with the businesses before automation to avoid any kind of mistrust.

She said after withdrawal of the Pre-Shipment Inspection (PSI) system, the Customs authority is applying its discretionary power on determining transaction value.

Each of the buyers purchases product on individual price negotiation capacity but the Customs picks one transactional value and conducts valuation on that price, she said.

"The Customs can link its database with the rest of the supply chain of the world to know the actual value of the product in other countries," he said.  

She proposed to resolve problems on investment of gratuity fund and workers' profit participation fund (WPPF).

On WPPF, workers are exempted from payment of tax while employees have to pay income tax on the fund.

Ms Chowdhury said it is impossible to draw a line between management officials and workers.

She also proposed to reduce the existing high corporate tax rate of the country as ASEAN countries have the highest 25 per cent corporate tax rate.

NBR member (VAT policy) Barrister Jahangir Hossain, first secretary (income tax policy) Shabbir Ahmed, among others, spoke at the meeting while FICCI vice-president Kevin Lyon and Executive Director Jamil Osman also attended.

source : the daily sun

0 Response to " New VAT to be implemented Jul 1"

Post a Comment