SUSPENSION OF NEW VAT LAW

Both old, new BINs to remain effective

Jasim Uddin | Published: 21:57, Jun 29,2017

 
 

A file photo shows the National Board of Revenue’s head office in capital Dhaka. Both old and new business identification numbers (BIN) will remain effective despite the fact that the government suspended the new VAT law for two more years, said the National Board of Revenue. — New Age photo

Both old and new business identification numbers (BIN) will remain effective despite the fact that the government suspended the new VAT law for two more years, said the National Board of Revenue.
The revenue board on Thursday also said that it would continue the ongoing activities to make the VAT system automated under the Value-Added Tax Act-1991.
Businesspeople will be able to conduct all types of business activities including import, export, opening letterd of credit and participation in tenders by using both 11-digit old BINs and online generated nine-digit new BINs until further decision, said a notification of the VAT Online Project of the NBR issued on the day.
Automation activities will be completed on time to improve environment of doing business in the country and implement the government adopted Vision-2021, it said.
Officials of the NBR said that the old BINs, commonly known as VAT registration numbers, would not be invalid from July 1 as the government backtracked from full implementation of the new VAT and Supplementary Duty Act-2012 with uniform 15 per cent VAT.
The 2012 law was scheduled to come into force from July 1 this year and from the day old BINs were supposed to be invalid while online generated new BINs would come into force from March 15, the day the NBR started issuing those.
But the parliament on Wednesday approved the Finance Bill-2017 putting the new law on hold for two more years and returning to existing 1991 law with multiple VAT rates following pressure of business community and considering negative impact of the law on prices of essential commodities.
Officials said that there were 8.40 lakh old BIN holders in the country. Of which,
only 36,000 businesses submit VAT returns regularly.
On the other hand, more than 55,000 businesses so far received e-BINs from the VAT online system of the NBR.
Of them, 35,000 businesses replaced their old BINs with e-BINs while 20,000 businesses received fresh e-BINs.
Officials of the NBR said that many businesses started using e-BINs in opening letter of credit, getting loans, conducting import and export and other business activities.
The revenue board wants to continue the automation process including online issuance of BINs as the 1991 act also supports the activities, they said.
The NBR, however, will take some days to finalise its decision on which BINs will finally persist, they said.
It will also have to bring some changes in online system of the VOP to digitise VAT returns submission process under the existing law having multiple rates of VAT.
The online system has been prepared to implement the new law with uniform 15 per cent VAT under the VAT Online Project with a cost of Tk 551 crore. Of the amount, Tk 450 crore or $60 million is being provided by the World Bank.
The revenue board drafted the new law under the prescription of the International Monetary Fund. 

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