Retailers to get inclusive VAT system
All retail businesses will gradually come under an inclusive value added tax (VAT) collection system, to prevent further confusions of customers, the National Board of Revenue (NBR) said on Sunday.
As per the upcoming system, businesses will have to mention prices of products including VAT, as opposed to the existing practice of showing prices exclusive of VAT, said NBR Chairman Abu Hena Md Rahmatul Muneem.
The NBR chief made the comments while speaking at a program marking the 11th lottery on Value Added Tax (VAT) receipts generated through EFDs against purchases made by consumers from stores.
In some cases, Muneem said, consumers feel pressured or burdened with taxes when VAT in product prices is shown as an additional amount.
The NBR chairman, however, expressed his frustration seeing poor response in the EFDMS lottery.
According to the new VAT law-2019, the VAT collection will be inclusive with the price of product which was allowed in both inclusive and exclusive form in the old VAT law-1991.
A senior official of NBR said the EFDMS system would need some amendments aiming to fully implement the inclusive VAT challan system.
So far, NBR has installed 3,393 EFDs in Dhaka and Chittagong, which have been provided free of cost.
But recently, NBR moved away from the decision to distribute free VAT machines to at least 100,000 business organizations.
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