5pc advance tax on all imports in proposed budget

Staff Correspondent | Published: 00:00, Jun 18,2019

 
 

Businesses will have to pay 5 per cent advance tax or AT — a value-added tax — on imported items ranging from capital machinery to essential consumer goods if the proposed budget is passed.
Finance minister AHM Mustafa Kamal has proposed to impose the AT, scrapping advance trade VAT, at commercial and import stages.
Officials of the National Board of Revenue said that the AT was refundable.
Businesses will be able to adjust the AT with his or her payable VAT by filing the monthly VAT
returns.
Traders who don’t have business identification number (BIN) will be able to get cash refund by making an application to the respective VAT commissioner.
The commissioner will settle the application within 15 days and issue cheque making a refund to the trader, they said.
They also said that it would not increase the VAT burden on traders and consumers as importers would get a refund of the paid AT.
The government proposed to impose the AT to ensure revenue collection from all importers as there are many cases where importers don’t file VAT returns.
So, the measure will ensure government’s revenue even if any importer and trader didn’t file returns for VATable domestic trade, they added.

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