(১০৫৫) Govt to reform VAT law, says Muhith

Saturday, May 21, 2011 Unknown
The government will bring some changes in the VAT (Value Added Tax) law to expand the country’s VAT earnings, Finance Minister AMA Muhith said yesterday.

“Now the world is becoming a global village, which is leading us to reduce dependence on customs duty, but the pressure for earning revenue is going on VAT collection. So we have to bring some changes in law to increase revenue from VAT,” he said.

The minister was speaking at the inaugural function of the newly-elected executive committee of Customs and VAT Association at a hotel in Dhaka yesterday, organised by the National Board of Revenue (NBR).

He said reforms in the VAT law will be made in next fiscal year, though the changes will come into effect one year after the changes are made.

Commerce Minister Mohammed Faruk Khan and NBR Chairman Dr Nasiruddin Ahmad were also present at the function, with outgoing President of Customs and VAT Association Hussain Ahmed in the chair.

Former and existing high officials of NBR and newly-elected President of the committee Feroz Shah Alam, its General Secretary Shahidul Islam and executive members, among others, were also present at the function.

Speaking as chief guest, Muhith said the county’s present revenue collection ratio is low, and urged for higher revenue collection to make the country a welfare state.

Responding to the NBR officials’ demand to increase manpower in the customs department and give necessary logistics to digitise tax collection system, Muhith said the government has taken serious efforts regarding the both issues.

“Manpower recruitment is really a complex process as so many departments of the government are involved here, while the NBR is also working to recruit more,” he said.

He also assured that, “the ministry will give necessary logistics to digitise the NBR as soon as it will send demand notes to his ministry”.

Commerce Minister Faruk Khan said the NBR was doing its best to take the country’s economy forward.

He also hoped that the customs and VAT officials be more transparent regarding their professional works.

NBR Chairman Dr Nasiruddin Ahmed said the revenue board is doing its best to contribute more in the development process of the country.

“We are doing our jobs in a holistic way to digitise the NBR,” he said.

The newly elected president of the association Feroz Ahmed said manpower recruitment of customs and VAT department is a must to raise tax GDP ratio through increased revenue collection.

He called upon the minister to take initiatives for recruiting more assistant tax officers and provide necessary supports to make them trained from abroad.

Secretary General Shahidul Islam urged the government for creating 10 special posts in the customs department to replace the foreign Pre-Shipment Inspection (PSI) companies

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