Clerics to motivate people to pay taxes: NBR

The National Board of Revenue is going to engage clerics in creating awareness and motivating people to pay taxes, it said in a statement yesterday.

“We are establishing a close partnership with the religious affairs ministry to implement the new VAT law. Clerics will be the main persons to create public opinion about the law,” NBR Chairman Md Nojibur Rahman said at a workshop on the VAT and Supplementary Duty Act 2012.

The revenue authority organised the event at the office of the VAT online project to make small and medium enterprises aware of the new VAT law.

The government aims to implement the law from July through the automation of VAT system in a bid to increase VAT collection and compliance.

The law is expected to bring about accountability and transparency in the revenue administration.

NBR Chairman Rahman said small and medium entrepreneurs play the key role in the country's advancement. It is important for them to have thorough knowledge of the new VAT law, he said.

For this, they need appropriate trainings, Rahman said, adding that the entrepreneurs would be trained gradually.

He said clerics of Islam, Hinduism, Buddhism and Christianity will be trained on VAT, tax and customs duty so that they become aware of the need to pay taxes and motivate people.

Rahman said the NBR will consider the recommendations from businesses. Finance Minister AMA Muhith will soon sit with the businesspeople, he added.

At the workshop, Cabinet Secretary Mohammad Shafiul Alam called upon all not to evade taxes.

“There is no heroism in dodging taxes,” he said, adding that one deceives himself by evading taxes.

Alam said the government aims to improve the business environment by easing rules and regulations, providing hassle-free services and making offices people-friendly.

He said all these will help improve Bangladesh's position in the World Bank's 'ease of doing business' ranking.

The NBR said businesses will not be affected for the implementation of the VAT law. Under the new law, SMEs having less than Tk 30 lakh in annual turnover will be exempted from VAT payment.

Businesses, registering turnover from Tk 30 lakh to 80 lakh a year, will have to pay 3 percent turnover tax.

VAT, now the main source of revenue, accounted for 36 percent of the total tax of Tk 155,519 crore collected in fiscal 2015-16.

The government introduced VAT in 1991 to increase revenue collection from domestic trade and industries.