Finance Minister AMA Muhith has criticised apex trade body for opposing the proposed value added tax and supplementary duty act 2012.
“The VAT reform was announced in 2009, but FBCCI has now woke up from sleep after five years and demanded cancelling the law we have made,” Muhith wrote the comment on a letter sent by the trade body to him urging not to implement new law.
The law, formulated as per the 2009 announcement of Vat reforms, has been passed by the Parliament and is due to be implemented from July 1, 2015.
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), however, alleged that its suggestions were not taken into account while making the law.
The body said the new law imposes Vat on all stages of production and trading. It demanded reforming the existing law rather than implementing the new one.
It thinks the demand should be considered in the “interest of both public and private sectors, and the people.” But finance minister thinks the country’s trade and business will benefit from the new Vat law.
“The law has all strong elements and so the country’s trade and business will benefit from implementation of it,” he said at a seminar in September this year.
Internal Resources Division organised the seminar on Vat and SD Act 2012, aimed at reducing differences between government and businessmen on the issue.
Commerce Minister Tofail Ahmed, Food Minister Advocate Qamrul Islam, Economic Affairs Adviser to the Prime Minister Dr Mashiur Rahman and FBCCI president Kazi Akram Uddin Ahmed also attended the event.
The seminar discussed pros and cons of the new law with the representatives from businesses.
Meanwhile, a committee is now assessing new law before its implementation. The committee is due to submit its report next week.
Muhith said the committee would have to submit a report after reaching a consensus on disputed provisions, if there is any, of the new VAT law. “Recommendation of the committee will be accepted for the law. There would be scope for open discussion in the committee,” he added.
The current row over the issue is feared to delay the implementation of the law by one year.
Officials said it may be delayed by one year due to opposition from the FBCCI and lack of preparedness on the part of the NBR.
