New VAT law to help businesses: ICAB
Doing business will be easier after the new VAT law takes effect, said Institute of Chartered Accountants of Bangladesh (ICAB).
But there are some challenges in the Value Added Tax Act 2012 which need to be addressed, said ICAB President Adeeb Hossain Khan.
He made the comments at a seminar on 'New VAT Act 2012 and Rules 2016' at the ICAB auditorium in Dhaka on Sunday, according to a statement.
Under the law, firms will have to register for VAT or sign up for turnover tax once their annual turnover touches Tk 80 lakh and Tk 30 lakh respectively, according to a paper presented by Muhammad Mehedi Hasan, a chartered accountant, at the programme.
He said taxpayers are required to deposit VAT to the state coffer and maintain a positive balance in their accounts under the existing VAT system. “Such advance payment of VAT will not be required under the new law,” he said.
Jahangir Hossain, member for VAT policy of the National Board of Revenue, said the current accounts of firms will no longer exist after the new law comes into effect on July 1 this year. He said the implementation of the law will reduce taxpayers' hassles.
AK Chowdhury, a former president of the ICAB, said the new VAT law has some complex features. “We have to learn more about the law because it will affect everybody's life.”
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