Bangladesh Supermarket Owners Association on Wednesday
demanded for introduction of package VAT system for superstores in line with
other similar types of shops such as departmental stores and large shops.
At a pre-budget discussion with the National Board of
Revenue, they claimed that introduction of unique value-added tax system or
package VAT for analogous shops would ensure level playing field for all
entrepreneurs.
On the first day of the pre-budget discussions held at NBR
headquarters, entrepreneurs from shops, printing, security services, courier
services, and travel and tourism sectors demanded that the revenue board should
provide various tax benefits and prevent tax evasion by traders within the
sectors to ensure competitiveness in business.
They also demanded that the NBR should ensure compliance
as many VAT-payable traders remain out of VAT net.
If most of the traders from a particular sector do not
pay VAT, the compliance traders who pay VAT will not be able to survive, they
said.
BSOA general secretary Md Zakir Hossain said that one per
cent VAT may be imposed on superstores established on above 12,000 square feet
space.
Currently, 2 per cent VAT is applicable on sales of
supermarkets like Agora, Shwapno and Meena Bazar while other shops including
large ones and departmental stores enjoy package VAT facility under which shop
owners pay VAT annually ranging from Tk 3,000 to Tk 12,000 based on the
location of shops.
Bangladesh Mudran Shilpa Samity demanded for scraping
international tender system for printing text books for primary and secondary
schools claiming that local printing houses were capable of meeting the
domestic demand.
‘If international tender is invited, the government
should evaluate the tender documents submitted by Indian suppliers adding 20.43
per cent duties, taxes and fees to make the local bidders competitive,’ BMSS
chairman Shaheed Serniabat said.
Currently, the National Text and Curriculum Board of the
government pay 20.43 per cent taxes and fees including 12 per cent customs
duties on behalf of Indian suppliers while local bidders have to pay 61.50 per
cent duties on import of paper, he said.
Local printing houses do not get work order as their bid
price becomes higher than Indian bidders as the government evaluate the tender
documents of Indian bidders excluding the duties and taxes, he said.
Bangladesh Dokan Malik Samity president SA Kader Kiron
alleged that VAT officials harassed them when they went to pay VAT.
‘They sought bribe from us who pay VAT but do nothing to
them who don’t pay,’ he said.
Representatives from Security Services Companies Owners
Association and Courier Service Owners Association demanded to bring all
companies from the sectors under VAT net saying that there may be many
companies which do not pay VAT.
Association of Travel Agents of Bangladesh demanded that
the revenue board should consider the 3 per cent tax paid by the travel agents
on their commission as final settlement.
ATAB also requested the NBR for not deducting 10 per cent
tax at source on foreign currency deposited in their accounts.
Tour Operators Association of Bangladesh president Akbar
Uddin Ahmed sought tax holiday for seven years on income of tour operators to
make the sector vibrant in the country.
The Federation of Bangladesh Chambers of Commerce and
Industry adviser Monjur Ahmed requested the revenue board to ensure that all
traders from the same sectors pay VAT to ensure a level playing field for all.
FBCCI director Abdul Haque said that the revenue board
must reduce the VAT rate from 15 per cent under the new VAT act to be
implemented from July 2016 otherwise traders would not be able to survive.
NBR chairman Md Nojibur Rahman said that he would
instruct the officials for not harassing the taxpayers.
‘We will also try to find out who pay VAT and who don’t,
and will take steps to bring all taxable traders under the tax net,’ he said.
At the meeting, NBR member
Farid Uddin, Firoz Shah Alam, Parvez Iqbal, among others, spoke. (Source: New
Age, April 2, 2015)