The National Board of Revenue is yet to complete the amendment to the existing value-added tax rules as the country’s apex trade body has not given its opinion on the proposed amendments.
The delay in amending the rules has delayed the introduction of the online VAT returns submission system, officials said.
Under the circumstances, the revenue board on Thursday gave a seven-day deadline to the Federation of Bangladesh Chambers of Commerce and Industry to provide its opinion on the amendments which have already received approval from the finance ministry.
VAT wing of the NBR sent a letter to FBCCI president Md Shafiul Islam in this connection.
‘The VAT authority will assume that the FBCCI has no opinion on the issue if it does not provide it within the deadline,’ said a high official of the NBR.
The revenue board would send the draft of the amendment to the law ministry for vetting after the deadline, he said.
Online VAT returns submission system was scheduled to begin first from November 1, 2017 and then January 1, 2018.
But, the revenue board failed to introduce
the system mainly due to delay in amendment of the rules.
VAT officials said that completion of the amendments was necessary for continuation of VAT online system as well as introduction of VAT returns submission online.
Around six months has already passed after the revenue board got approval from the finance ministry on the proposed amendments, they said.
The VAT Online Project has deferred introduction of online returns submission and making mandatory use of electronically issued e-BINs for business activities including export and import due to delay in completion of the amendment.
Validity of existing 11-digit manual business identification numbers (BIN) would expire from April 1 bringing into force the electronically issued nine-digit e-BINs, they said.
VAT authority would have to amend the 1991 rules to make it compatible with the online system.
The revenue board had started the process for obtaining opinion of the Federation of Bangladesh Chambers of Commerce and Industry in mid-October by seeking the names of representatives for a joint working committee on the issue.
In a meeting of the committee held on November 29, the FBCCI promised to send its feedback as
soon as possible but the NBR was yet to get any final result from the trade body.
Officials of the FBCCI said that they were yet to get any letter from the NBR in this connection.
A committee of the trade body, however, was working on the issue and would soon send its opinion to the NBR, they said.
The revenue board took the move to amend the VAT Rules-1991 to incorporate provisions related to automation of VAT system of the now-postponed new VAT Act-2012 and VAT Rules-2016.
It is necessary to incorporate some of the provisions of the suspended rules into the existing rules, amend some VAT forms and introduce other new forms to continue the automation process stipulated in the new law scheduled to come into force from July, 2017.
The government deferred the implementation of the law for two more years until July, 2019 following strong
opposition from business community, mainly from the FBCCI.
The NBR, however, decided to continue VAT automation process including e-BIN issuance, returns filing and payment of VAT online under the 1991 VAT law by amending the rules and regulations.
The revenue board is implementing the VAT Online Project at a cost of Tk 551 crore.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Tax