Finance minister says large number of organisations evade VAT

Finance Minister AMA Muhith is irked by the evasion of VAT payment by a large number of organisations. 

Staff Correspondentbdnews24.com
Published : 12 July 2015, 03:21 PM
Updated : 12 July 2015, 03:59 PM

The minister, who has set a revenue collection target of Tk 3 trillion during this fiscal, said on Sunday only 60,000 organisations paid VAT.
 
He asked whether it was a justifiable number for a country like Bangladesh. 

“I think 300,000–600,000 organisations are eligible for VAT but they do not pay up.”

Muhith was speaking at a programme organised by the National Board of Revenue at Bangabandhu International Conference Centre to recognise organisations that pay the maximum amount of VAT. 

He was not happy with the base of income tax payers either, saying that in a country of 15 billion people, only 1.1 million people pay income tax, when, he felt, around 40 million were eligible to pay the tax. 

The target for the fiscal is to earn Tk 1.76 trillion from taxes, of which Tk 1.3 trillion is to come from VAT and income tax.   

“I feel those eligible to pay income tax should come forward for human development, benefits and scopes; and for everyone to live better. 

“VAT is a good tax, justified tax. Pay the amount and help us earn revenue.” 

He added VAT and supplementary tax laws would become fully effective from next year. 

“We have had a lot of discussion on the new law and a review committee is working on it. Our target is to ensure a business-friendly, easy and transparent VAT system.”