The VAT sector accounts for more than 37% of the overall revenue collected by the National Board of Revenue.
The amount of money going into state coffers from this sector is increasing, and in November of FY23, the amount of VAT collected was up 17% over the same month in FY22.
The National Board of Revenue (NBR) decided to mark National VAT Day and National VAT Week from December 10 to 15 in order to raise awareness and encourage the general public.
In this regard, NBR emphasized various steps to raise VAT collections.
All of this information was provided by NBR Chairman Abu Hena Md Rahmatul Muneem on December 8 during a press conference held at the NBR facility in Segunbagicha.
The press conference was organized on the occasion of National VAT Day to be observed on December 10 and celebrate the VAT week from December 10 to 15.
Regarding revenue collection NBR chairman said: “There has been a 15% growth in revenue collection this year so far over last year. The growth in VAT collection is more than 17% in YoY.”
Regarding VAT week, he said that on the occasion of VAT Day and Week, important campaigns related to VAT are being conducted to increase people's awareness.
Campaigns are being carried out in print and electronic media as well.
Apart from this, VAT payers will be given special services directly from Circles, Divisions and Commissionerates regarding registration, returns, e-payments, A-payments, purchase and sale accounting, issue of invoices, use of EFD/SDC machines, he added.
On VAT Day, NBR will also honour nine companies that pay the highest VAT at the national level.
Asking a question on revenue collection challenges Muneem Said: “NBR is well prepared to face the challenges. We will try to continue the growth rate (of revenue) despite the challenges.”
Replying to the question on IMF's recommendation to reduce VAT exemption, the NBR chairman said: “We are rationalizing it and it's a continuous process. We can't withdraw everything (VAT exemption) overnight.”
In his speech, he termed 'VAT exemption' as support for businesses or policy support.
However, NBR is going to celebrate the 12th VAT Day this year.
