VAT worth Tk10 lakh or above to be deposited thru’ e-payment

Staff Reporter :
The National Board of Revenue (NBR) has made it mandatory to pay Value-Added Tax (VAT) worth Tk 10 lakhs and above through electronic payment or automated chalan.

VAT registered companies and firms will have to deposit the amount of the indirect tax through e-payment or a-chalan from the first day of January 2024, according to an office order of the NBR.

NBR official sources said there are around 5 lakh VAT registered companies and firms across the country.

Of them, around 70 per cent businesses have registered for VAT submission online. The number of online VAT registered companies and firms are steadily increasing.

On an average 2 lakh entities are paying VAT per month, but not all of them are submitting returns online.

Currently, firms had to deposit net vat, an indirect tax paid by consumers, amounting to Tk 50 lakh or higher through e-payment.

The number of such VAT registered entities with high turnover is a few hundred.

Following the directive, an increased number of firms will come under e-payment, officials said.

The NBR, which collects 87 percent of the tax revenue for the state, said it is working to develop a modern online-based VAT system in the country.

It said businesses will be able to settle VAT deposits faster through e-payment or automated chalan. The e-payment will also be instrumental to prevent forgery, it added.

“We are encouraging e-payment,” said NBR Member VAT Policy Zakia Sultana.

Sameer Sattar, President of the Dhaka Chamber of Commerce & Industry (DCCI), told The New Nation, “We welcomed the decision as it will help to bring transparency in collecting the indirect tax.”

“Businesses have no problem with paying through electronic system. What is needed is smooth functioning of the online system, including its server, so that we can comply without hassle,” he added.

The indirect tax was 39 per cent of the total tax revenue of Tk 327,667 crore in fiscal year 2022-23.