Dhaka Chamber of Commerce and Industry (DCCI) has proposed a 7 percent flat VAT rate from the next fiscal year though the government indicates not to bring any change in its plan to implement a uniform 15 percent VAT rate from July next, reports UNB.
“If the government reduces tax and VAT (value added tax) rates, investment will automatically increase,” said DCCI President Abul Kasem Khan proposing 7 percent flat VAT rate.
“The IMF officials wished to know how we’ve planned to implement the new VAT. We told them that it’ll come into effect in July and be set at 15 percent for two years,” Finance Minister AMA Muhith was quoted by media as saying in the World Bank headquarters in Washington on Thursday.
While addressing a workshop on VAT and income tax at the DCCI auditorium on Saturday, Abul Kasem said the government should create more awareness among businesspeople to make the new VAT act familiar to all.
Chairman of the National Board of Revenue (NBR) Md Nojibur Rahman was present as the chief guest and inaugurated the workshop, with around 200 people taking part in it, said the DCCI.
Member (Tax), NBR Parvez Iqbal, Member (VAT) Barrister Jahangir Hossain and Deputy Project Director, VAT online project Md Zakir Hossain made presentations on their respective sectors.
The DCCI President proposed for tax exemption on the income of businesspeople which is re-invested in the same business as it will fuel local investment as well. “We need a tax system that promotes efficiency in production, consumption- encouraging trade, business and investment,” he said.
Regarding easier VAT collection system, the DCCI President said it is not so easy to give ECR (electronic cash register) machines to all businesses across the country, rather the government may consider of using customized mobile application for VAT calculation and collection.
He said the world is now digitized; financial transactions are now being done through mobile network. “We should use this advantage.”
NBR Chairman Md Nojibur Rahman said DCCI has long been a trusted partner of NBR. The new VAT Act is very easy, inclusive, hassle-free and business-friendly one, he said.
Responding to DCCI President’s proposal for mobile application, he said NBR will positively consider the proposal and work jointly with mobile operators, BASIS, Ministry of ICT and A2I Project.