Muhith: NBR failing to convince business about new VAT law

Finance Minister AMA Muhith said the National Board of Revenue has some weaknesses in negotiating with businessmen about new value-added tax law to be effective from July 1. Local businesses have long been demanding multiple VAT rates instead of a single 15% VAT rate under the new law. “Businessmen have agreed on new VAT law at a meeting with the NBR. But minutes later they changed their stance,” Muhith told Dhaka Tribune on Thursday. “This reflects the shortcomings of NBR in implementing the new law,” he said. “This weakness should be removed.” The new VAT law is intended to ensure better services to the taxpayers and increase revenue collection with transparency and accountability in the process, officials said. Last week the NBR formally inaugurated the online VAT payment system to enable businesses to complete VAT-related tasks and deposit the tax online. “From now on, the taxpayers will pay VAT online,” said finance minister at the inauguration. The launch of the much talked-about online VAT system took place years after the NBR took the scheme to automate its VAT administration and implement a new VAT law by replacing the existing VAT Act 1991. The revenue officials said firms would be able to pay the VAT online when the new VAT law, framed in 2012, gets implemented.