United News of Bangladesh

The National Board of Revenue (NBR) has asked its field level offices to send their feedback on how to remove any bottlenecks in implementation of VAT-related laws and rules to boost the revenue collection. The VAT collection is regulated by Value Added Tax and Supplementary Duty Act, 2012 and Value Added Tax and Supplementary Duty Rules, 2016.  A joint working committee was formed by the National Board of Revenue and Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) on June 11, 2019 to increase the efficiency of the VAT administration, maintain a taxpayer-friendly online VAT system, and resolve problems arising at the field level in the implementation of the Value Added Tax and Supplementary Duty Act, 2012 and the Value Added Tax and Supplementary Duty Rules, 2016. In view of this, the NBR and the FBCCI recently held a meeting to discuss the progress in the implementation of the VAT collection and application of the related laws and rules. The high-level meeting chaired by the coordinator of the Joint Working Committee decided to hear the issues and opinions regarding the implementation of the VAT law from field-level officials and businesspeople, according to sources familiar with the development. On January 6, the NBR sent a letter asking the field level offices and other stakeholders to send their opinion to the Joint Working Committee, identifying the important problems faced in the implementation of the Value Added Tax and Supplementary Duty Act, 2012 and the Value Added Tax and Supplementary Duty Rules, 2016. The letter also said that necessary measures will be taken to resolve the problems after discussion in the next meeting of the committee. The VAT law and the rules were formulated in a bid to increase revenue collection and establish transparency and accountability in a country that has one of the lowest tax-GDP ratios in the world. VAT, a type of consumption tax, is the biggest source of revenue for the government, followed by income tax and customs tariff. Read: After disgraceful 2024 ‘goat scandal’ NBR steps up efforts to curb graft The new measures originally envisaged a uniform 15 percent VAT on goods and services, doing away with the multiple rates under the existing law -- a change that sparked protest from businesses, particularly from the FBCCI on grounds that it would hurt small and medium businesses and stoke inflation. The government is now under pressure from the IMF to improve revenue collection in the coming days while it is trying to get loan from the lending agency to steady the foreign currency reserve.  In a major step the interim government last week increased the VAT and supplementary duties on over a hundred goods and services in the middle of the running FY25. Two ordinances related to the hikes were issued on Thursday prompting concern among businesses and ordinary people. The move comes amid IMF's suggestion that the government increases its revenue by tightening the tax collection and administration. The fourth tranche of the IMF's ongoing credit programme, amounting $645 million, is expected to be available by February 10 as it will place the fourth tranche of the $4.7 billion loan to the board on February 5. Read more: NBR to launch door-to-door campaign to boost VAT collection

The government has rearranged the office timing for the upcoming holy month of Ramadan from 9 am to 3:30 pm for all government, semi-government, autonomous and semi-autonomous institutions. The decision was taken on Monday at the weekly cabinet meeting held with Prime Minister Sheikh Hasina in the chair at the Prime Minister's Office. “During the Ramadan, 9:00am to 3:30pm has been fixed as the office time from Sunday to Thursday,” said cabinet secretary Khandker Anwarul Islam told reporters at the Secretariat. Also read: Govt primary schools to remain open till 20th Ramadan: Minister He said there’ll be a 15-minute break from 1:15 to 1:30pm for Zahr prayer. However, the governor of Bangladesh Bank informed that the office time for banks would be from 9:30am to 4:00pm during the Ramadan, said Anwarul. The Supreme Court reschedules their own office timing for the Ramadan following their rules and considering the public interest. Also read: Slashing VAT, taxes on essential commodities during Ramadan under consideration: Home Minister This year, the holy Ramadan in Bangladesh is expected to begin on 02 April.

Public and private organizations have been instructed to run with half the employees from Monday till February 6 in an effort to curb the spread of Covid-19 pandemic. The Cabinet Division issued a notification in this regard on Sunday. The other half of the staff will function virtually, according to the notification. Bangladesh Supreme Court will issue necessary directions regarding the activities of the court during this period. Also read: Tough Covid curbs back in Bangladesh amid Omicron scare Besides, Bangladesh Bank and Financial Institutions Division will provide necessary instructions regarding banks, insurance and financial institutions. Earlier on Friday, the government announced the closure of all the schools, colleges and universities till February 6. Covid situation in Bangladesh Bangladesh logged 14 more Covid-linked deaths with 10,906 fresh cases in 24 hours till Sunday morning. Also read: Covid surge in Bangladesh: All educational institutions to remain shut till Feb 6 The daily positivity rate increased to 31.29 per cent from Saturday’s 28.02 per cent after testing 35,051 samples, according to the Directorate general of health Services (DGHS). The fresh numbers took the country’s total fatalities to 28,223 while the caseload mounted to 1,685,136 on Sunday