Interim government's Finance Adviser Dr Salehuddin Ahmed said that a significant portion of VAT collected in the country often does not reach the government treasury. He stressed on making the VAT system simpler and more transparent.
He made these comments at a seminar on the occasion of “VAT Day and VAT Week-2025” organized by the National Board of Revenue (NBR) in Agargaon on Wednesday.
Dr Salehuddin said: "The VAT system should be such that it is easy to understand for everyone. If the process is complicated, the opportunities for fraud increase. When a business or buyer pays VAT, it should be deposited accurately in the treasury - this is everyone's expectation. But in reality, it often does not happen."
He also said that increasing domestic resource collection is very important for the country's economic stability.
"Development activities that depend on loans or grants are not sustainable in the long term. If the tax-GDP ratio is not increased, there will be pressure on necessary spending in the health, education and social sectors."
NBR Member (VAT Implementation and IT) Md. Azizur Rahman delivered the welcome address at the seminar. Member (VAT Audit) Syed Musfiqur Rahman presented the keynote address.
Ficci vice president Yasir Azman, concerned secretaries of the Ministry of Finance and Financial Institutions Division were present as special guests.
In his address as chair of the event, NBR chairman Md. Abdur Rahman Khan pledged to develop a business-friendly VAT system.
He said: “VAT system will be simplified. Traders will pay only 15% VAT on the selling price. There will be no need for any complicated laws or huge books. We are developing software that will automatically calculate and complete VAT collection. There will also be no need to hire consultants.”
Various proposals were made at the seminar regarding reforming the VAT system, increasing transparency and ensuring accountability of traders.