“You (businessmen) will inform us immediately if you are harassed during VAT collection,” he said at a workshop on ‘Awareness Raising on Value Added Tax and Supplementary Duty Act 2012’ at CIRDAP Auditorium in the city.
Dhaka Chamber of Commerce and Industry (DCCI) organised the day-long event.
Mosharraf said VAT collection needs to be increased for the mobilisation of the country’s domestic resources. “If the budget seize grows, the revenue collection has to be increased too,” he said, asking NBR officers and businessmen to know more about the new VAT law.
The NBR chief said they are training their officers about VAT collection as per the new law and planning to teach the businessmen about the law.
He pointed out that one has to pay big amounts of Tax and VAT in the developed countries and there is no option to avoid them.
“We’ve formulated the new VAT law in 2012. We’re now implementing it after some amendments,” he added.
The NBR chairman said that the country’s economic growth is progressing. Internal demand, consumption as well as government's expenditure are also increasing day by day. In the budget foreign aid is only 2 percent of total GDP and 13-14 percent of total budget.
“The revenue collection was Tk2,30,000 crore against the target of Tk2,80,000 crore in the 2018-19 fiscal,” he added.
He said in a country of 170 million people, only 2 million people submit their tax returns, so we have to widen the tax net to increase the revenue. Besides, he underscored the importance of ensuring discipline in tax collection system.
DCCI President Osama Taseer said they organised the workshop to make the businessmen aware about the new VAT law.
“The workshop will increase awareness among businessmen and help create a culture of paying VAT. This will help the country’s economic development. So, we don’t want any harassment during VAT collection,” he said.
Osama said VAT free turnover limit has been increased to Tk 50 lakh and in this Act, VAT refund system has been introduced. Advance Income Tax on import of capital machineries has been exempted which would facilitate private sector.
He also urged for AIT exemption on import of raw materials, VAT rebate system for all VAT payers and VAT exemption on life-saving medicines.
Member of NBR Shahnaj Parveen said New VAT Act has been formulated keeping in mind to reduce cost of doing business.
She also informed that refund system, e-payment and audit system are in process of being online.
“The business community must know the details about the rules and procedures of new VAT Act and concerned SROs,” she urged.
DCCI Senior Vice President Waqar Ahmad Choudhury gave vote of thanks at the function.