PRE-BUDGET MEETING FY 2013-14
NBR slates sweetmeat, raw material traders for VAT evasion
National Board of Revenue chairman Ghulam Hussain on Thursday came down heavily on the sweetmeat traders and other raw material suppliers for not providing buyers with the value-added tax Challan with the intention of evading VAT.
At a pre-budget discussion with representatives of oil, gas, foods, beverage, cigarette, jute, fabrics and yarn sectors, he requested the consumers and buyers of raw materials from the local market for not purchasing any things without VAT invoice.
‘In my experience, I was not offered bill with VAT Challan when I bought sweets on the occasion of Pohela Boishak, first day of Bangla New Year, on Sunday,’ he said.
There are many allegations against the sweetmeat sellers that they do not pay VAT properly, he said.
He asked the Bangladesh Sweets Manufacturers Association to ensure sellers provide bill with VAT Challan and pay VAT properly.
Aminur Rahman, secretary general of the association, said they would ask all the members of the association to comply with the law and pay VAT.
At the meeting, the buyers of raw materials from the local market alleged that suppliers do not issue VAT Challan to them and for that reason they can not avail the facility of getting VAT rebate from the NBR.
They urged the revenue board to ensure implementation of VAT law so that the suppliers provide the buyers with VAT invoice which is also known as form ‘Mushak-11’.
Bangladesh Bread, Biscuit and Confectionery Manufacturers Association president Jalal Uddin alleged that they needed huge quantity of pulse and sugar for producing products but the sellers do not issue VAT Challan.
‘As we can not submit Mushak-11 form, we do not get VAT rebate,’ he said.
NBR member (VAT policy) Jahangir Hossain said, ‘There is a provision in the VAT law of issuing VAT Challan to the buyers for some specific products and services but most of the sellers and suppliers do not comply with the provision.’
At the meeting, sweetmeat manufacturers association, however, demanded the NBR reduce VAT on sales to 7 per cent from the existing 15 per cent and set gross profit margin at 20 per cent instead of 30 per cent for imposing tax.
Bread, biscuit and confectionery manufacturers demanded that the NBR declare the sector VAT free.
Bangladesh CNG Filling Station and Conversion Workshop Owners Association demanded that the NBR impose tax on actual profit instead of turnover.
Currently the sector has to pay tax at the rate of 0.50 per cent on total turnover.
They also wanted waiver of advance income tax and advance trade VAT on import of machinery.
The Bangladesh Jute Spinners Association recommended extending time for the existing facility of income tax for the manufacturers of jute products to June, 2016.
Currently they are to pay income tax at reduced rate of 15 per cent.
NBR members Farid Uddin and Syed Aminul Karim were present, among others, in the meeting.
-With New Age input
