The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) yesterday urged the government to increase the Value Added Tax (VAT) turn over ceiling to Tk36 lakh from existing Tk24 lakh for the small and cottage industries.
FBCCI President Kazi Akram Uddin Ahmed made the call at a meeting with the Finance Minister AMA Muhith at his secretariat office in the city yesterday.
The apex trade body also proposed to introduce multiple VAT system instead of flat 15% to help facilitate the small business.
It also argued that this type of rates was being practiced in many developed and developing countries such as France, China, Malaysia and other EU countries.
“We’ve proposed the government to introduce multiple VAT system instead of flat 15%,’’ Akram told the reporters after the meeting.
“Although it won’t be possible for the government to implement all the demands altogether, it will be possible to implement in phases,” said Akram as quoting the minister.
He also mentioned that during the meeting he discussed about 10 recommendations and the minister agreed on five issues while he took note on others for further discussion and consideration. Replying to a question, Akram said: “We will try to help the International Monetary Fund (IMF) to have better understanding about the country’s economic situation and will also consider the logic of IMF’ in this regard.”
He, however, said, “It is not necessary for us to abide by all the IMF conditions.”
A nine-member panel, headed by a former National Board of Revenue member, put forward its recommendations to Finance Minister AMA Muhith early January.
The panel suggested the revenue authority to impose multiple VAT rates, instead of the universal 15% in all areas. It also recommended raising the ceiling of turnover VAT to Tk36 lakh from Tk24 lakh to facilitate growth of small and cottage industries especially in the rural area.
