Speakers at a workshop on Saturday needed simplifying value-added tax (VAT) with regard to a much better business regime for Small and Medium Enterprises (SMEs).
The Dhaka Chamber of Commerce & Industry (DCCI) arranged the virtual workshop on the “Finance Act 2020 and VAT & Supplementary Duty Act 2012”.
Addressing the function, DCCI President Shams Mahmud put emphasis on increasing the tax-GDP ratio and investment-friendly simplified earnings structure to reach the purpose of learning to be a developed nation.
“For that, we must widen the tax net, online tax and VAT return submission system, simplification of return submission and hassle-free service,” he said.
The DCCI President requested to exempt VAT on lease rent for the registered industries that are in procedure in the economical zones.
He suggested reducing the advance tax rate for the neighborhood SMEs who import recycleables.
Md Alamgir Hossain, Member (Tax Policy) of the National Board of Revenue (NBR), said the government is wanting to balance between your target of GDP growth and the challenge of Covid-19 situation. When compared to neighbouring countries, the tax rate isn't too high in the country but it could be more rationalised, he said.
He said if NBR feels that the reduced amount of particular tax may increase business activities, it will certainly be done.
He expressed his hope that the online VAT and tax return system will be completely implemented by another year. In order to improve the tax net, the tax structure will be reformed soon, said Alamgir.
Masud Sadiq, Member (VAT Policy) of NBR said, “We must simplify VAT system to make sure ease of conducting business. It’s true that for the country’s development, an elevated revenue target is possible but simultaneously we have to balance between the increased earnings target and rationalised tax regime, VAT structure.”
M Shafiqul Alam, Convenor of DCCI, requested easing the VAT return submission process and refund of advanced VAT system.
Some 100 members from DCCI and different business entities joined the workshop, said a news release.