Finance Minister AMA Muhith, seen among the awardees honoured by the NBR for paying highest VAT, at a function at city’s Bangabandhu International Conference Centre in Dhaka Tuesday.

Finance Minister AMA Muhith Tuesday said the new VAT law in the making will be finalised after discussing with all stakeholders, including the businesspeople.

“We believe in discussions, and so we will discuss with all stakeholders prior to formulation of the VAT law,” Muhith told a function marking the VAT Day 2012.

National Board of Revenue organised the event at city’s Bangabandhu International Conference Centre.

“As soon as the law was tabled at the cabinet meeting, it was said that there was some controversies regarding it,” Muhith said in response to a demand of business leaders for further discussing some aspects of the upcoming law.

AK Azad, President of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI), in his speech earlier, demanded that the government negotiate with district level businessmen before finalising the law.

The minister said, “I would like to say it (law) is not an old matter for the country. The country got its first VAT law in 1991, while such kinds of law evolved in the whole world in the 60s.”

Citing instances from the developed world where VAT played a key part in bringing transparency in corporate businesses, he said the system also contributed much to improving country’s businesses also.

“A revolution has taken place around the globe in accounts managements because of VAT,” he said, hoping that country’s accounting tasks would significantly be reduced by 2015.

Stressing the importance of the stratified tax collection method, he said the day is not far away when there will be no duties on external trades as the world is heading towards more openness.

In such situation, he said, the country might have to look for other means of tax collection.

The issue of increased tax collection also bears much importance as the next year’s budget will climb to 18.2 per cent GDP, from this year’s 15.5 per cent.

“The more resources the government holds, the more people to get benefits.”

The NBR says despite its limited application the system now constitutes 55 per cent of total tax collection by the internal resources collector.

The Daily Sun/Bangladesh/ 11th July 2012