Finance Minister AMA Muhith thinks that there is still scope of widening VAT net as only a handful of eligible institutions pay tax. Even though very effective, he said, the system is quite unpopular among businessmen and its expansion will require campaign from tax officials to remove fear and hassles involved with the system. “The main problem over VAT is that only 60,000 organisations pay tax. But, the question is whether these 60,000 organisations are the only organisation who are eligible to pay VAT?,” he questioned. “There are, I think, 3 lakh to 6 lakh organisations in the country which are eligible to pay VAT. The people of the country do not want to pay tax,” he said expressing dissatisfaction. The minister’s remarks came while he was addressing a discussion marking the National VAT Day and the VAT Week organised by the Nantional Board of Revenue (NBR) at Bangabandhu International Convention Centre in the city. Although VAT is unpopular, Muhith said, earning more revenue through the system is important for the nation as the money earned through VAT has been used for “the development of people, ensuring their happiness and peace and to give them more facilities.” He assured businessmen that a friendly VAT system will be established, which would also be more transparent, simple and modern. Muhith said that the VAT Law and Supplementary Duty Act 2012 will be fully implemented next year. “We had a lot of discussions on the new VAT law, and a committee was also working on it,” the minister said,” adding that a business-friendly and transparent system would also ensure accountability within the arrangement. Apart from introducing the new VAT law, he said, the tax authorities has also been working on modernising tax system by incorporating modern information andcommunication technology. Speaking on the occasion, Commerce Minister Tofail Ahmed urged the NBR members to be careful so that no one is harassed while paying tax. “I’ll request all concerned to work with sincerity and honesty in this regard.” Mentioning that only 11 lakh people, out of 16 crore, pay income tax, the minister said there are many people even in villages who are in a position to pay income tax. “I expect NBR officials will work with integrity to increase the number of taxpayers,” the minister added. PM’s Economic Affairs Adviser Dr Moshiur Rahman, Chairman of the Parliamentary Standing Committee on Finance Ministry Dr Md Abdur Razzaque, and FBCCI President Abdul Matlub Ahmed, among others, spoke at the programme held with NBR member Farid Uddin in the chair. At the event, NBR awarded top VAT-paying companies — nine at national level and 110 organisations and individuals at district levels — for their outstanding contributions to the national exchequer. The highest VAT-paying companies and the individuals were awarded crests and certificates under three categories – production, service and business. The awardees will enjoy some privileges for the next one year, including priority while reserving seats in public transports and access to VIP lounges at the airports. Their spouses and children will also get the priority while reserving cabins in the public hospitals. The awardees will also be invited to national programmes, organised by the municipalities and city corporations.
