The Federation of Bangladesh Chambers of Commerce and Industry on Monday demanded that the National Board of Revenue set value-added tax rate at 7 per cent lowering from the uniform 15 per cent proposed at the new VAT and Supplementary Act-2012. At a seminar in Dhaka on business process under the new VAT and supplementary act to be implemented from July 2016, FBCCI president Abdul Matlub Ahmad said that 15 per cent VAT was very high for the poor people of the country. ‘Bangladesh is not a developed country like European countries, even not like Malaysia and Thailand in Asia. So why the people will pay VAT at high rate?’ he said. In Malaysia and Thailand, the rate of VAT is 6 per cent, he said. ‘So the FBCCI, on behalf of the business community, officially proposes setting the rate at 7 per cent, in between the rates being followed in Malaysia and Thailand,’ he said. The NBR should immediately work on the rate, he said. He also said that the business community wanted to pay VAT, but not to face harassment while paying VAT. He also requested the businesspeople to pay VAT sincerely. Referring to a survey conducted by Dhaka South VAT Commissionerate that found only 9 per cent of the registered business entities and 4 per cent of the entities registered under the package VAT system pay the tax, he said that it was very disgraceful for business community. At the seminar, state minister for finance MA Mannan said that harassing the traders during VAT payment process was not acceptable at all. The revenue board will have to work together with the business community to end such harassment, he said. NBR chairman Md Nojibur Rahman said that the online system of VAT payment was now ready for the commencement. According to the new VAT act, traders will not have to visit the NBR offices for any purpose of VAT payment once the act is implemented as all the business procedures including taking registration, submitting tax returns and paying tax could be done online sitting in office or home. VAT online project director Rezaul Hassan said that they had already completed the preparations for starting online VAT registration and the process would start from April this year. Around 80 per cent technical preparations for online return submission and e-payment have also been completed, he said. NBR members Farid Uddin and Jahangir Hossain, FBCCI adviser Manzur Ahmed, and Bangladesh Knitwear Manufacturers and Exporters former vice-president Mohammad Hatem spoke, among others, on the occasion.
