Finance Minister AMA Muhith has placed Value Added Tax, 2012 Bill before parliament to expand the scope of VAT, supplementary duty and turnover tax, and simplify the process.
The bill was sent to the Parliamentary Standing Committee on Finance for further scrutiny for one month.
The bill proposed 15 per cent VAT on taxable products and imports under destination principles, and establishment of an authority to implement the laws.
The destination principle is a concept of international taxation which allows for VAT to be retained by the country where the taxed product is being sold. They are collected on imports and rebated on exports.
The bill also proposed three per cent turnover tax.
The rate would be zero if the product is meant for export and if the imported products sent outside Bangladesh without using in the country.
Products imported under back-to-back Letter of Credit (L/C) and supplied under finance lease will be exempted from VAT.
The minister said various distortions had intruded the existing VAT 1991 and those came in the way of implementing a standard taxation system.
It is needed to have a business- and revenue-friendly system incorporating international best practices, Muhith said.
VAT Authority
The proposed authorities will comprise officials including the Chief Commissioner, Commissioner (VAT), Commissioner (Appeal), Commissioner (LTU), and the Director General of the Central Intelligence Cell.
The National Board of Revenue has authorised the VAT Commissioners to perform any duties, however, the board would have the authority to amend or reverse any decision taken by them.
Any official of an Assistant Commissioner's rank or above could enter any business premises and search and examine records and documents.
If anybody violates the law, the VAT officials could confiscate goods and settle the disputes.
The VAT officials would issue a notice for hearing while confiscating goods or imposing any penalty.
The Commissioner or the chief commissioner would have the authority to deal with products worth over Tk 2 million, while Assistant Commissioners would handle products worth Tk 1.5-2.0 million.
For Joint Commissioners, the range would be Tk 1.0 million to Tk 1.5 million and for Deputy Commissioners Tk 0.5-1.0 million.
The revenue officials would deal with products valued below Tk 0.2 million.
All the information and documents would be kept confidential under the Right to Information Act, 2009.
When passed, the bill would replace the present VAT Act, 1991.
The Penalty
As per the proposals, dishonest taxpayers would have to face maximum penalty of one year's imprisonment and/or the entire tax amount by way of penalty.
কোন মন্তব্য নেই:
একটি মন্তব্য পোস্ট করুন