VAT retained at 15pc

Finance minister Abul Maal Abdul Muhith turned down business people’s demand for reducing the Value Added Tax, and announced in his budget speech keeping VAT rate at 15 per cent like before.

The finance minister started reading out his budget proposals for the next 2017-18 fiscal in parliament at 1:40pm.

Proposing the national budget of an outlay of over Tk 4 trillion (Tk 4,00,266 crore), Muhith sought complete implementation of the 2012 law on Value Added Tax with a flat rate of VAT.

“Tax-revenue will increase by 1.7 per cent of GDP. Tax net will be expanded and the new VAT law will be implemented. Tax exemption and tax holiday facilities will be withdrawn gradually,” said the finance minister in his budget speech.

Laying emphasis on collecting taxes through VAT system, the octogenarian finance minister said VAT appears to be one of the best forms of tax from the very beginning.

“But, few businessmen do not want to keep accounts at different stages of production and service delivery under this VAT system. So I have to develop new ideas to make this VAT system acceptable.

“I think I will be able to satisfy the business community by increasing the existing turnover tax and VAT exemption threshold.

“Since 1991, VAT rate is 15 per cent to which both consumers and the business community have already become used to.

“I propose to keep VAT rate at 15 per cent as before,” said Muhith.

Source: Prothom Alo