Businessmen have demanded a clear guideline regarding the implementation of the VAT policy for the fiscal year 2018-2019.
The demands were made during at a meeting on Budget for Fiscal Year 2018-19 and Value Added Tax (VAT) policies held by Business Initiative Leading Development (BUILD) on Tuesday.
The participants discussed the conflicts between VAT Act 1991 and VAT and SD Act 2012, and urged for clear instructions from the government for implementation of VAT policies in Bangladesh.
In his June 1 budget speech last year, Finance Minister AMA Muhith announced that the Value Added Tax and Supplementary Duty Act 2012 would come into effect by July 1 that year.
But the implementation of the law was later postponed through an SRO issued later on July 1, 2017, and the government had to backtrack on this initiative.
BUILD arranged for a presentation intended to raise awareness regarding several aspects of VAT, including detailed pros and cons and rates of VAT.
Representatives of private sector expressed their concerns about the policies, specifically regarding VAT to be collected from cottage and small industry, since they constitute more than 88% of total industrial enterprises in Bangladesh.
Formulation of clear guidelines regarding implementation of the VAT online platform and benefits of the usage of automation were also called for during the meeting.
Participants at the meeting also discussed the need for the framing and public circulation of clear rules for implementing the VAT policy in the country so that confusions that have already risen can be resolved, and the government does not have to backtrack on VAT collection again for the next fiscal year.