The Government of Bangladesh has Prepared All Procedures
To Enforce & To Activate New VAT Law of 2012 (instead of VAT Law of 1991) at 1st July-2016 ,Thus New VAT law worries The Businessmen of Bangladesh:
The agony of businessmen continues to persist as the tangle over the Value Added Tax (VAT) Act is not being resolved.
According to sources, if necessary corrective steps are not taken, the consumers will have to purchase items at higher prices due to VAT and innumerable traders will be affected seriously by the VAT Act-2012. In view of this, the businessmen across the country are vocal against the VAT law demanding implementation of it only after certain amendments.
Commerce Minister Tofail Ahmed has assured the businessmen repeatedly that the government will not do anything that will create problems for them. Prime Minister Sheikh Hasina at a meeting asked Finance Minister AMA Muhith to implement the VAT Act giving due consideration to the objections of the businessmen. Muhith himself also assured that there will be reflection of this in his budget speech on June 2. However, the concerns of the businessmen are not over as no clear announcement about this has yet been made.
Abdul Matlub Ahmed, president of the business community’s apex body FBCCI, said that the businessmen are in favour of the implementation of the VAT Act- 2012. But, it would be accepted only after amendments to several provisions as some aspects are there that would harm the business and force people to buy commodities at higher prices. Again, these would create opportunities for dishonest revenue officials to harass the ordinary traders having small capital and, above all, would push the local industries towards hard competition.
The government has to take the difficult decision to withdraw supplementary duty for the implementation of VAT Act. Import of goods costs more because of the imposition of supplementary duty. So, supplementary duty was retained so long for the protection of many local industries. But, in the coming budget supplementary duty will be withdrawn from all commodities except 150 items.
On the other hand, costs of imported goods have already declined due to fall in the prices of fuel oil on the international market. But, the imposition of 15 percent VAT on all commodities will raise the prices of locally produced items.
Former adviser to a caretaker government Mirza Azizul Islam said the government is pushing the local industries into a debacle by deciding to reduce the supplementary duty for implementing the VAT Act.
Former vice president of FBCCI Helal Uddin said, “What is the necessity of implementing the act that would affect local businesses? Everything relating to VAT Act should be made clear to the businessmen before the presentation of the budget.”
According to sources, if necessary corrective steps are not taken, the consumers will have to purchase items at higher prices due to VAT and innumerable traders will be affected seriously by the VAT Act-2012. In view of this, the businessmen across the country are vocal against the VAT law demanding implementation of it only after certain amendments.
Commerce Minister Tofail Ahmed has assured the businessmen repeatedly that the government will not do anything that will create problems for them. Prime Minister Sheikh Hasina at a meeting asked Finance Minister AMA Muhith to implement the VAT Act giving due consideration to the objections of the businessmen. Muhith himself also assured that there will be reflection of this in his budget speech on June 2. However, the concerns of the businessmen are not over as no clear announcement about this has yet been made.
Abdul Matlub Ahmed, president of the business community’s apex body FBCCI, said that the businessmen are in favour of the implementation of the VAT Act- 2012. But, it would be accepted only after amendments to several provisions as some aspects are there that would harm the business and force people to buy commodities at higher prices. Again, these would create opportunities for dishonest revenue officials to harass the ordinary traders having small capital and, above all, would push the local industries towards hard competition.
The government has to take the difficult decision to withdraw supplementary duty for the implementation of VAT Act. Import of goods costs more because of the imposition of supplementary duty. So, supplementary duty was retained so long for the protection of many local industries. But, in the coming budget supplementary duty will be withdrawn from all commodities except 150 items.
On the other hand, costs of imported goods have already declined due to fall in the prices of fuel oil on the international market. But, the imposition of 15 percent VAT on all commodities will raise the prices of locally produced items.
Former adviser to a caretaker government Mirza Azizul Islam said the government is pushing the local industries into a debacle by deciding to reduce the supplementary duty for implementing the VAT Act.
Former vice president of FBCCI Helal Uddin said, “What is the necessity of implementing the act that would affect local businesses? Everything relating to VAT Act should be made clear to the businessmen before the presentation of the budget.”