NBR issues rules to implement new

Staff Correspondent | Published: 00:09, Nov 09,2016

 
 

VAT act from July

The government has issued the Value-Added Tax and Supplementary Duty Rules-2016 to pave the way to implement the new VAT act from July next year.
The National Board of Revenue on November 3 issued the gazette notification of the rules containing 119 articles and 70 forms consistent with the new VAT and Supplementary Duty Act-2012.
Though the VAT rules have given priority on automated procedures related to registration for VAT identification number, VAT payment and other business operations, they have also kept the option of manual procedures considering the existing development of the country’s business community in automation.
The NBR has failed to implement the law since 2012 in the face of strong opposition from the business community on various issues mainly imposition of single VAT rate at 15 per cent for all sectors instead of multiple VAT rates and withdrawal of package VAT system for shop owners.
Business community including the Federation of Bangladesh Chambers of Commerce and Industry has been demanding that the VAT rate be reduced and multiple VAT rates and package VAT system be introduced.
The new rules, however, did not consider the demands.
Officials concerned said it was not possible to consider the demands without amending the VAT act.
VAT authorities, however, have considered most of the demands of the business community related to procedures, they said.
The new rules have kept a provision of online connections of integrated VAT administration system with automated systems of customs and income tax wings of the NBR, controller general of accounts and Bangladesh Bank for smooth implementation of the online VAT system.
According to the new VAT rules, large businesses will be able to run their operations with only one business identification number (BIN), known as VAT registration
number, instead of separate BINs for all branches.
The online VAT system will facilitate businesses to complete their VAT payment procedures including obtaining BIN, filing VAT returns, making VAT payment and getting VAT refund online.
Businesses either will apply for BINs and turnover registration number with the online VAT system for getting the facility online or with the respective VAT offices, the rules said.
The rules also say that the NBR can appoint debt recovery officer to recover due taxes.
The NBR has also made use of BIN mandatory for several purpose including import and export, registration of land and building in favour of VAT registered people, participation in tender and approval of bank loan in favour of VAT registered people. 

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