The much talked-about 'Value Added Tax and Supplementary Duty Act, 2012' was supposed to be implemented in FY 2017-18
The National Board of Revenue Chairman Md. Mosharraf Hossain Bhuiyan yesterday said value added tax (VAT) registration would be made mandatory for all traders from the next 2019-20 fiscal year.
Currently, VAT registration is not mandatory for those having annual turnover below than Tk8, 000,000.
“Whatever the VAT slabs will be fixed, VAT registration will be mandatory for all traders across the country from the next fiscal year. Without having the registration, no one would be allowed to do their business,” he said.
He came up with the announcement while addressing a pre-budget discussion with different business associations at the NBR office. Business leaders of Bangladesh Paper Mills Association, Courier service Association and Hotel Restaurant Owners Association took part in the discussion program.
NBR chief said they are going to introduce sector-wise multiple VAT slabs from the next fiscal year.
“The rate of VAT will be fixed at 15% for those who can take rebate, and others rates will be announced in the budget documents,” added Bhuiyan.
The much talked-about 'Value Added Tax and Supplementary Duty Act, 2012' was supposed to be implemented in FY 2017-18. However, the government could not implement the Act amid stiff opposition from business groups, and suspended it for two years.
As per the decision of the government, the act will be effective from 2019-20 fiscal.
Urging the traders to be honest in keeping their accounts formally, Hossain said some traders were maintaining two accounts of their businesses intentionally to evade taxes.
“This is not fair at all,” he added, saying that all traders must use electronic fiscal devices for ensuring fair accounts.
In his speech, he said that the government would continue tax incentive facility for some vital sectors, but it would be impossible for the government to maintain similar advantage for too many sectors.
“We observed some enterprises could not do well despite having fiscal incentives, though before the privilege they had assured us of performing well if incentive was granted ,” NBR chairman said.
So the NBR decided to rationalize the number of eligible sectors for incentives, he said, adding that incentives sometimes dent competitiveness in the market.