Country's small and medium entrepreneurs will have more scope to flourish their businesses under the new Value Added Tax (VAT) law as tax exemption facilities for such businesses have been expanded to a large extent.
Under the existing VAT law small businesses are paying VAT but as per the new VAT regime to be implemented from July 1 this year, all businesses with annual turnover up to Tk 30 lakh shall be completely exempted from paying VAT.
BSS quoted NBR chairman Md Nojibor Rahman, "The new VAT law will play an important role for flourishing of small and medium businesses as special focus has been made on this law for these businesses which are playing major roles for the country's economic progress".
He said small and medium businesses will get more facilities under the new VAT law as the National Board of Revenue (NBR) has incorporated all 'good-practices' of the present VAT law in the new one.
"The new VAT law will be effective from July 1, we've already started count-down and businesses have been asked to take online registration from March 15 but small and medium business will not have to take any registration," said the NBR chairman.
According to the new VAT law, the businesses which have annual turnover from Tk 30 lakh to 80 lakh will have to take registration for payment of only three percent turnover tax.
Zakir Hossain said under the present VAT law businesses having annual turnover up to Tk 80 lakh pay three percent turnover tax but if NBR wants, it can realize VAT at the rate of 15 percent from them. The new law does not give NBR such right, he added.
"So, the interests of small and medium businesses are well-protected under the new VAT law," he added.