Dhaka Chamber of Commerce & Industry (DCCI) arranged a workshop on VAT and income tax on 22 April, 2017 at DCCI auditorium. Chairman of National Board of Revenue (NBR) Md. Nojibur Rahman was present as the chief guest and inaugurated the workshop. Around 200 participants took part in the workshop.
Member (Tax), NBR Parvez Iqbal, Member (VAT) Barrister Jahangir Hossain and Deputy Project Director, VAT online project Md. Zakir Hossain made presentation on their respective sectors.
DCCI President Abul Kasem Khan in his address of welcome said government is going to enact new VAT Act from July next. “This is completely a new Act for us, so government should create more awareness among the businessmen to make it familiar”, said Abul Kasem Khan. He said if government reduce tax and VAT rate, investment will automatically increase. He proposed for tax exemption on the income of businessmen which is re-invested in the same business as it will fuel local investment as well. Abul Kasem Khan said that we need a tax system that promotes efficiency in production, consumption- encouraging trade, business and investment. Since Bangladesh envisions graduating into middle income country by 2021 escalating into 30th largest economy in the world by 2030, we need huge investment thus he proposes for 7% flat VAT rate from the next fiscal. Regarding easier VAT collection system he said that it is not so easy to give ECR machines to all businesses across the country, rather government may consider of using customized mobile application for VAT calculation and collection. He said the world is now digitized; financial transactions are now being done through mobile network which we have, so we should use this advantage.
Chairman of NBR Md. Nojibur Rahman said DCCI is a trusted partner of NBR since long. He said NBR has introduced tax card which was the brainchild of DCCI in 2010. He also said that NBR is firmly committed to ensure an investment and business friendly environment in the country. He said the new VAT Act is very easy, inclusive, hassle-free and business friendly. The new VAT Act will be hassle free and SME friendly, he said. Responding to DCCI President’s proposal of mobile application, he said NBR will positively consider the proposal and work jointly with mobile operators, BASIS, Ministry of ICT and A2I Project.
Member of NBR Barrister Jahangir Hossain said there are many limitations in the existing VAT law which will be resolved by replacing the new VAT Act. He also said that the new Act will help widen tax and BIN net in the country. He said 3% turnover tax will be imposed for annual turnover between Tk. 30-80 lakh. For SMEs no VAT is applicable for annual turnover up to Tk. 30 lakh. Because of self calculation it will reduce cost of doing business.
DCCI Senior Vice President gave the concluding remarks while DCCI Vice President Hossain A Sikder, Directors Hossain Akhtar, Imran Ahmed, Md. Alauddin Malik, Riyadh Hossain former Senior Vice President Haider Ahmed Khan, FCA, former Vice President Absar Karim Chowdhury, M Abu Hurairah and Secretary General AHM Rezaul Kabir were also present at that time.