Following suspension of the implementation of the new VAT law, the National Board of Revenue is now putting emphasis on disposing of long-pending cases through Alternative Dispute Resolution method to boost the revenue collection for achieving the target in the current fiscal year.
The country’s revenue collecting authority is now in discomfort as the government has scrapped their move to introduce the unified 15 per cent value added tax system.
Parliament in June last delayed the introduction of the unified VAT system by two years following widespread criticism from businessmen as well as MPs from both ruling and opposition benches.
All commissionaretes have been asked to make a list of long-pending cases which can be settled through ADR, a senior NBR official said.
According to the available data, some Tk 3,060.33 crore remains unrealised due to customs-related cases pending with different courts, including the High Court. The amount is Tk 5,845.43 crore for the VAT-related cases while Tk 8,167.08 crore for the tax-related cases.
During a recent review meeting with the commissioners of income tax, VAT and Customs held at the NBR headquarters, NBR chairman Md Nojibur Rahman has asked the officials concerned to expedite the ADR method to dispose of these pending cases, the NBR official told UNB.
At the meeting, emphasis was given on utilising the ADR system to settle the cases. As part of the initiative, separate focal point officials have been appointed for each of the wings, he said wishing not to be named.
The NBR introduced the ADR system on July 1, 2012 to speed up the disposal of the revenue-related cases through out-of-court settlement.
The NBR’s revenue target in the current fiscal year was set at Tk 248,190 crore while the target of non-NBR tax revenue collection at Tk 8,662 crore. The target of non-tax revenue collection was Tk 31,179 crore.
The NBR eyes to fetch Tk 86,867 crore from income tax and corporate tax while Tk 91,344 crore will come from VAT, Tk 30,153 crore from import and export duties and Tk 38,212 crore will be generated from supplementary duty.
The NBR official said the revenue collecting authority had calculated the revenue target keeping in mind that the huge inflow of revenue would come from VAT. ‘But now, we aren’t getting that support from the VAT wing as Parliament didn’t give us permission to impose the new VAT law,’ he said.
While placing the budget in Parliament on June 1 last, finance minister AMA Muhith proposed imposing the new unified VAT rate which is 15 per cent.
But it drew widespread criticisms from both ruling and opposition benches in the House.
Even prime minister Sheikh Hasina requested the finance minister to suspend the implementation of the law. Later, Muhith suspended it for two years.
The NBR official said the government has not yet downsized the revenue collection target. ‘We’re now under huge pressure to realise the money as the target for this year is relatively much higher,’ said the NBR official.
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