VAT system must be streamlined by reducing rates

Al Amin :
The National VAT Day is going to be observed today (Saturday) aiming at ensuring a favourable environment of mutual trust, confidence and cooperation among all levels of revenue officials and businessmen.
The National Board of Revenue (NBR) has chalked out various programmes to create awareness among the businesses in order to pay Value-Added Tax (VAT) properly.
The NBR has set a target of revenue collection worth Tk 1.89 trillion (Tk1.37 trillion from local stage and Tk 0.52 trillion) through VAT in the current fiscal year.
Dr Md Shahidul Islam, Member of the NBR, said that they are working relentlessly for increasing revenue through VAT by enhancing administrative expenditure, administrative reforms and modernization, ensuing governance in collecting VAT.
“More than four lakh companies in the country have come under VAT registration. Of them, over 80.5 thousand firms took the registration in last one year and over 80 per cent VAT returns are being submitted through online,” he added.
NBR officials said various services are being provided through 14 modules after launching online registration and return filing process through VAT online project.
The process of VAT automation has been largely completed. Currently, VAT registration, returns, refunds, case management, arrears management and documentation have brought under automation, which help to enhance the number of online VAT return filings.
Besides, the business entities is now completing all the VAT-related works online as the NBR introduced the Integrated VAT Automated System.
The automated system enabled businesses to deposit VAT in the state treasury through online or mobile banking, download the payment invoice and add it to the government’s Integrated Budget and Accounting System (iBAS) online.
It also enabled taxpayers to submit their VAT returns to the NBR’s online system. The new system is linked to the government’s Automated Challan (A-Challan) System, and the customs office’s ASYCUDAWorld system.
As a result of launching the new integrated system, VAT for importing goods will go directly
to the state treasury through the ASYCUDAWorld system, the NBR officials said.
Experts, however, said that the country’s VAT system must be easier, simplified and customer-friendly. Otherwise, the automation will not bring fruits properly.
Dr Abdur Razzaque, Chairman of the RAPID, told The New Nation, “The initiative of VAT automation is a good sign for the country as it will help to transparency in collecting revenues and to reduce corruption.”
“But, we have multiple VAT rates, which is not business-friendly at all. So, it must be streamlined further by ensuring uniform VAT rate,” he said.
He further said NBR should take initiative to implement the VAT law-2012 immediately and properly in order to increasing revenue through VAT.
Al Mamun Mridha, Secretary General of Bangladesh-China Chamber of Commerce & Industry (BCCCI), said, “The NBR should take strong measures to expand VAT net as many business entities are still out of VAT registration across the country.”
The measure will reduce burden on the regular VAT taxpayers, Mamun, also Managing Director of Mridha Business Ltd, said.