FBCCI calls for independent 'impact assessment' of new VAT law

The FBCCI, the apex body of the business people, is now asking the government to run an impartial impact assessment of the new VAT law before its implementation.

Staff Correspondentbdnews24.com
Published : 1 July 2017, 07:56 PM
Updated : 1 July 2017, 07:56 PM

"An impact assessment of this law by an independent organisation should be done as there as we have two years to implement it," said FBCCI President Shafiul Islam.

The Federation of Bangladesh Chambers of Commerce and Industry or FBCCI on Saturday at a press briefing appreciated the decision but said the neutral assessment would give a clear picture of its impact on the market.

In the face of mounting criticism and vehement opposition from the business communities, the government put the 15 percent uniform VAT on hold for two years.

They also demanded an end to the harassment the businesses are facing during VAT collection.

The apex trade body's president thanked the government for suspending the implementation of the new VAT law from this fiscal and reducing the rate of excise duty on bank deposits on middle-income people.

Shafiul Islam also called for slashing the 1 percent tax at source in readymade garment, leather, frozen foods and all other export items to 0.50 percent.

He also proposed withdrawal of VAT imposed on locally made sandals, handmade bread and biscuits.

The parliament passed the Tk 4.26 trillion budget for fiscal 2017-18, which has a revenue target of Tk 2.88 trillion, on Thursday.

From value-added tax, the government aimed to earn more than Tk 910 billion, a fourth of the total target of revenue earnings. The target was based on the government’s plan to implement a 15 percent uniform VAT rate.

But, Prime Minister Sheikh Hasina reversed the move on Thursday, keeping the existing multiple rates of VAT for the next two fiscal years.

The same VAT law's implementation was delayed by one year in the face of protests from businesses when the government attempted to impose it last year.