National Board of Revenue (NBR) is going to appoint BULL SAS, France as consultant to introduce online system for value added tax payment from July, 2015.
A proposal in this regard has been sent to the cabinet division for approval, said NBR sources.
This is to bring an Integrated VAT Administration System (IVAS) in the country under the VAT and Supplementary Duty Act 2012 which will take into effect from July next year.
The system will be introduced under the VAT and Supplementary Duty project worth Tk551.59 crore.
World Bank will finance Tk449.78 crore and the remaining cost will be collected from local sources.
The BULL SAS will introduce the VAT automation at Tk12.47 crore.
According to the NBR proposal, an eight-member tender evaluation committee has selected the French firm as it scored high in technical and financial offers. The World Bank has also given its consent on selection of BULL SAS, France which will buy, among others, a software named Commercial-Off-The-Shelf (COTS).
NBR Chairman Md Ghulam Hussain yesterday said the supplementary and regulatory duty on all but harmful products will become zero from July 1, 2015. The Act will be effective from the month, replacing the existing VAT Act 1991.
NBR chief said different wings of NBR are working towards implement the law. NBR sources said the French company scored 88.37 marks in the technical offer and 0 .92 marks in financial offer.
JV CRC Sogema and Sogema, Technologies, a joint venture Canadian firm, was among other bidders.
The VAT and Supplementary Duty Automation project was approved on October 8 last year.
NBR formulated the new VAT and Supplementary Duty law on the basis of recommendations by the International Monetary Fund.
The IMF tagged the conditions of implementing new VAT law with the disbursement of a fund under the IMF’s Extended Credit Facility (ECF).
A NBR high official said the new VAT law, once implemented, will bring several new sectors within the VAT net. He said the sectors will lease, grants, licences, permits and different services.
The official said the turnover tax will also be increased.
“Presently, small and medium enterprises (SMEs) have to pay 3% tax on annual turnover if it exceeds Tk80lakh. With the new law coming into effect, 3% tax will need to be paid for turnovers of Tk24lakh to Tk80lakh. If turnover is over Tk80 lakh, tax rate will be higher,” he explained.
