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DCCI proposes 7% flat VAT rate

  • Published at 03:06 pm April 29th, 2017
  • Last updated at 03:48 pm April 29th, 2017
DCCI proposes 7% flat VAT rate
Dhaka Chamber of Commerce and Industry (DCCI) has reiterated its proposal to the government to set 7% uniform VAT instead of 15% in the upcoming budget. DCCI President Abul Kasem Khan came up with the proposal at a press conference held at its office in Dhaka on Saturday. He said: "We are not against the new VAT law. But the process of VAT collection would be a big problem for us as the mechanism for VAT collection is not ready yet. “We will fight till the last moment so that the VAT rate is reduced. Because if the VAT rate is not reduced, inflation must go up which will have a negative impact on economy.” He also proposed the government to provide ECR (electronic cash register) machines to all businesses at no cost. Earlier in last week, the DCCI chief at a workshop raised the same proposal. However, Finance Minister AMA Muhith said the value-added tax rate will be 15% for all sectors and there will be no change to this rate. After several deferrals on the implementation date, the government is now planning to implement the new VAT law from July 1.