VAT system must be customer-friendly: Otherwise automation will be fruitless

For ensuring a favourable environment of mutual trust, confidence and cooperation among all levels of revenue officials and businessmen, National VAT Day is observed on Saturday. We know the NBR has set a target of revenue collection worth Tk 1.89 trillion through VAT in the current fiscal year. 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. 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.
From July till April this fiscal year, VAT and supplementary duty collection from domestic business activities grew 13 per cent year-on-year to Tk 84,916 crore. The indirect tax collection was 37 per cent of the total Tk 2,27,756 crore tax collection logged by the NBR until April this fiscal year, according to the NBR. Also known as consumption tax, the VAT is the biggest source of revenue. It accounted for 39 per cent of the total tax of Tk 103,350 crore collected in fiscal year 2020-21.
The country’s VAT system must be easier, simplified and customer-friendly. Otherwise, the automation will not bring fruits properly. But we have multiple VAT rates, which is not business-friendly at all. So, it must be streamlined further by ensuring a uniform VAT rate.