Budget: VAT collection must not be a cause for harassment
The national budget worth Tk. 9.38 crore for the fiscal year 2026-27 was presented on the floor of the parliament on June 11 (Thursday).
This is the first time in the country’s history that such a big budget of the BNP government led by Prime Minister Tarique Rahman was formulated as a milestone budget.
This budget was placed at a time when the overall economy of the country is very fragile. Needless to say, the BNP government has had to start its journey with a fragile economy by inheritance.
Although the private sector is the lifeblood or main driving force of the country’s economy, the crisis in the sector is getting deeper and deeper.
In an immediate reaction over the FY27 budget, different chamber bodies – FICCI, DCCI, ICAB, CCCI, AmCham, and economists have welcomed several measures in the proposed budget.
However, they also raised concerns as it lacks the strategic depth needed to put the economy on a new trajectory.
To meet the vast expenditure of the budget, they stated that huge income will also be required.
That is why a little more emphasis has been placed on the value added tax (VAT).
According to official figures, there are 1.17 crore businesses in the country, but only 7.75 lakh are registered for VAT. However, the government wants to increase this number significantly.
Thus, the government will have to impose some conditions that will make it difficult to run a business without VAT registration.
A business must provide proof of VAT registration when opening a bank account, taking out a loan, renewing a trade license, opening a merchant account in mobile financial services, accepting or renewing membership in a trade body, obtaining electricity and gas connections in the name of the organization, and registering vehicles in the name of the business from BRTA.
According to the NBR, the number of VAT registered companies is currently about 775,000, of which a little over 500,000 companies file VAT returns.
To discourage VAT evasion, the government has reduced the annual turnover limit for mandatory registration from Tk 30 million to Tk 50 million.
In addition, necessary steps are being taken to ensure that no organisation is left out of the VAT registration.
But if there is a need to go directly to the NBR office, the risk of suffering and irregularities will increase.
It must be ensured that the VAT is deposited in the state treasury. As a result, traders do not have to make any illegal expenses.
We hope that the government will take the necessary decision after considering all aspects. In the interest of the economy, VAT system must be made easy and free from harassment.
