Business community has intensified lobbying with the government high-ups to annul the new Value-Added Tax and Supplementary Duty Act-2012 arguing that the law was formulated ignoring stakeholders’ opinion. In this connection, the Federation of Bangladesh Chambers of Commerce and Industry, the apex trade body in the country, recently wrote separate letters to the prime minister, Sheikh Hasina, and finance minister AMA Muhith to cancel the new VAT act which is scheduled to be implemented from July 2015.
The FBCCI has also apprised the issue to some other ministers including commerce minister, planning minister, law minister, state minister for finance, and influential government officials like economic affairs adviser to the prime minister, chairman of the parliamentary standing committee on finance ministry and chairman of the National Board of Revenue.
The apex trade body said that they were rather in favor of reforming the existing VAT Act-1991 incorporating some positive aspects of the new law and bringing automation in VAT system.
Terming the new law impractical, unnecessary and against the public interest, FBCCI made some proposals including conducting a survey among the business community to judge the acceptance of the law.
‘If taxpayers do not show interest about the law, it should be annulled,’ it said.
FBCCI also placed some recommendations to the finance minister for incorporating in the existing law.
The recommendations include incorporating the provision of new law related to expansion of VAT net through bringing immovable property, lease, licence and permit under VAT net and introduction of automated submission of VAT documents in the existing law.
They also proposed for forming a high-powered expert committee to implement the recommendations and reform the existing VAT law.
Officials of the NBR told New Age that the law was approved by the parliament after long consultation with
the business community.
They said that some other trade bodies including Dhaka Chamber of Commerce and Industry were also lobbying to annul the law.
The finance minister was also surprised getting the letter of the FBCCI signed by its president Kazi Akram Uddin Ahmed, a senior NBR official told New Age on Monday.
‘The law was formulated after long discussions with them since 2009. Now they are placing such demand which is very unfortunate,’ he said quoting the finance minister.
In a letter sent to the prime minister on July 19, Kazi Akram said that the law was forcibly imposed on the business people.
‘Business people hope that you [prime minister] will actively consider the demands of the business community to annul the new VAT law for ensuring proper collection of VAT,’ the letter stated.
FBCCI alleged that the government formulated the new law in line with the conditions set by International Monetary Fund for disbursing its US$ 1 billion extended credit facility.
The government did not give importance to opinion of the business community while formulating the law, FBCCI alleged.
-With New Age input
