Assess impact of new VAT law first: FBCCI | The Daily Star
12:00 AM, December 20, 2018 / LAST MODIFIED: 12:06 AM, December 20, 2018

Assess impact of new VAT law first: FBCCI

The Federation of Bangladesh Chambers of Commerce and Industry has urged the revenue authority to conduct an impact assessment study before implementing the new VAT law.

In a letter sent to the chairman of the National Board of Revenue, the apex trade body suggested that the changes between the VAT and Supplementary Duty Act 2012 and VAT Act 1991 should be identified as part of the study.

It stressed the need for assessing the impact of the new law on import, exports, manufacturing and trading in light of the VAT Act 1991 that has been in effect for more than two and a half decades.

The plea came months before the planned implementation of the new VAT law, enforcement of which was shelved for two years since June last year.

Its implementation was halted amid public outcry and reported pressure from the business community who opined that a uniform 15 percent VAT instead of the existing multiple rates would hurt businesses and raise living costs.

The FBCCI in its letter urged for studying incidence of application of 15 percent VAT, and impact of withdrawal of package and truncated VAT rates on retail business, service sector and consumers.

It also demanded impact assessment of the new law on small and medium enterprises and the service sector, assess capacity of businesses and revenue officials for enforcement of the new legislation and determine steps required.

The FBCCI also demanded that the NBR revise the new law by doing cost benefit analysis on the basis of proposals from the NBR field offices and recommendations of its member organisations.

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