Centre for Policy Dialogue (CPD) today said the inability to implement the new VAT and Supplementary Duty Act will have serious consequences in the current fiscal framework, particularly in the revenue mobilisation.
“The new VAT law has made a crash landing. So, schemes for automation of VAT system should be continued to pull it up,” CPD Distinguished Fellow Debapriya Bhattacharya said at a media briefing at BRAC Centre Inn.
CPD suggested that the continuation of digitisation of VAT process, revenue administration and bringing more businesses under the system of the existing VAT Act 1991 so that the increased number of firms gets the benefit of automation and ready to comply with the new law once comes into effect.
The independent think-tank also said the revenue mobilisation might be significantly lower than the target for the current fiscal year. At the same time, public expenditure will also be lower enough to offset any possible impact on budget deficit– similar to the recent trend, it said.