Business leaders say: Assess VAT law’s impact

Business leaders say: Assess VAT law’s impact

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Dhaka – Business leaders and researchers on Sunday called for planned impact assessment of new value-added tax law by an independent and local research organisation to find its actual outcomes credible and acceptable to all.
At view exchange meeting on impact assessment of new VAT law, they also said that the study should focus on contentious and unresolved issues between the tax authority and business community.VAT Online Project of the revenue board organised the meeting to discuss the scope and methodology of the planned research at Institute of Diploma Engineers, Bangladesh.
In Response, the revenue board made a proposal to form a consortium consisting of research entities and institutions to conduct the study to find out the way forward to implement the new VAT and Supplementary Duty Act-2012 from July 2019.
The 2012 VAT law was scheduled to come into force from July 2017 but the parliament in the budget session in June postponed the implementation for two more years amid strong resistance from the business community in the ground of negative impact of the law on prices of essential commodities, domestic industry a the d overall economy.
The revenue board at the meeting said that recommendation was required on some key issues including multiple VAT rates, lowering uniform VAT rate from 15 per cent, and retain the tariff value and truncated system before the meeting for discussions.
The Federation of Bangladesh Chambers of Commerce and Industry president Shafiul Islam Mohiuddin said that impact analysis of the law should be an independent study and it should not favour any side including the NBR and business community.
National interest has to be prioritised instead of favouring non-compliant traders or corrupt tax officials, he said.
The NBR should also not serve the International Monetary Fund or the World Bank as they are out donor and we will take receive loans which suits the development purpose of the country,’ he said.
Policy Research Institute executive director Ahsan H Mansur said that the revenue board might find out the solutions of prevailing problems related to the implementation of the new law through the impact assessment. – Staff Reporter

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