Abu Taher BappaPublished:
2020-07-15 09:24:21 BdST
e-Payment of VAT set to be introduced Thursday
The National Board of Revenue (NBR) is going to introduce e-Payment system for Value Added Tax (VAT) from July 16, aiming to reduce the hassles in payment by VAT payers.
Official sources said NBR Chairman Abu Hena Md Rahmatul Muneem will open the VAT e-payment system.
According to the existing law, eligible VAT payers have to submit their VAT returns every month along with the VAT payment for their previous month.
As per the official information, the NBR has formulated the e-Payment module under the VAT online project and has tested this at the consumer level through three local and foreign banks --Prime Bank, Midland Bank and HSBC.
No problem was found for paying VAT through using this system. Now all commercial banks will be brought under this system.
After the payment of VAT under the system, the copy of that Chalan will be sent to Bangladesh, CGA and respective VAT office automatically. One copy will also be sent to the organisation that submitted it.
NBR officials said transparency will come with this process as it plug the scopes of VAT evasion.
By using this system the enlisted person will be able to quickly pay his/her VAT and supplementary duty directly from his or her bank account easily, without risk to the national exchequer.
NBR officials said there will be no hassle for the taxpayers in this system.
Currently, 100 top VAT payers, who pay 30 percent of the total VAT, will be able to avail of the opportunity. Later, all other business entities will be brought under this system.
With the assistance from the World Bank, the NBR is implementing the VAT Online Project which was taken to implement the new VAT Law.
In September last, the NBR started taking the VAT return through online, but there was a scope to submit the VAT payment through online.
An NBR senior official said this system will encourage business entities to pay their VAT timely and accurately.
"Some of our VAT payers often show reluctance about paying accurate VAT blaming hassles and others problems in the VAT offices. These people will get hassle-free a quick process for paying their VAT," he said.
To improve the tax-GDP ratio in the country, which is the lowest among the South Asian countries, the VAT collection has to be increased, he added.
The total revenue collection for the 2020-21 fiscal was estimated at Tk 378,000 crore where the NBR will contribute Tk 3,30,000 crore. The revenue from non-NBR sources was estimated at Tk 15,000 crore, while non-tax revenue at Tk. 33,000 crore.
Of the grand amount for the NBR, Tk 103,945 crore will come from income, profit and capital tax, while Tk 125,162 crore will be contributed by VAT, supplementary duty will provide Tk 57,815 crore, Tk 37,807 crore will come from import duty, Tk 55 crore from export duty, Tk 3,686 crore from the excise duty and Tk 1,530 crore as other taxes.
For effective enforcement of Value Added Tax and Supplementary Duty Act 2012, the government has automated VAT registration process and Return submission activities under the VAT Online Project.
As per the available data, some 170,000 people have already got VAT registration using the online platform. Besides, taxpayers are submitting returns through the online system which is getting popular every day. Almost 35,000 taxpayers submit return through online system regularly.
"Digitised VAT management system developed by the VAT Online Project will reduce the cost of doing business remarkably, and bring dynamism, transparency, and accountability in the VAT administration," Finance Minister AHM Mustafa Kamal said in his budget speech on June 11.
Unauthorized use or reproduction of The Finance Today content for commercial purposes is strictly prohibited.