Photo-collected.
Dhaka //

National Board of Revenue (NBR) Chairman Abdur Rahman Khan said that tax exemptions are being given on a large scale to provide relief to the people of the country. People are getting the benefits of reducing VAT. However, revenue collection has decreased due to this. VAT will be levied again once the market situation comes to a tolerable level.

He said these things at a press conference organized on the occasion of National VAT Day on Monday.

In response to questions from journalists, the NBR Chairman said that there is no alternative to reducing tax exemptions. Some are given tax exemptions and some are not – this is a kind of discrimination. Although tax exemptions have been given in the public interest. Additional exemptions have also been given in the interest of the state. It has to be rationalized gradually. We have to come out of the culture of tax exemptions. Otherwise, it is not possible to increase revenue.

He said that the NBR also gave an idea of ​​how much tax can be reduced per kg on a product at the consumer level. But even though the government exempted taxes at the import stage, the prices of several daily necessities have not decreased to the expected level. However, if irregularities are continued to be tolerated, irregularities will increase. Someone or the other will have to protest this.

Abdur Rahman Khan said that it is better to set VAT at a single rate. This reduces leakage or evasion a lot. It is much easier to implement. Of course, an attempt will be made to set VAT at a single rate. This will be done after discussing with the traders. Efforts will be made to gradually remove the exemptions in the areas where exemptions are given.

The NBR Chairman said that tax exemptions have been given on daily necessities such as rice, sugar, onion, potato, egg, edible oil and dates. This has had a negative impact on tax collection. However, if the situation improves, VAT collection will increase. It is believed that there are some products from which proper VAT is not being received. Currently, there are 11 million registered taxpayers. In comparison, the number of VAT registered taxpayers is much less. The number of VAT registered taxpayers is only a little over 5 lakh.

Calling on taxpayers to register for VAT, he said, “Now, VAT registration, VAT payment and VAT return can be done easily from home. If you submit VAT return online, you will not need to submit hard copies to the office. There is an economic crisis. There is no alternative to overcome this crisis. The tax net must be increased quickly. Those who file VAT returns will be monitored and brought under the net. The NBR will go door to door to increase the VAT coverage. If the scope of the VAT net can be increased, the revenue deficit can be met in the remaining six months.”

Addressing the officials and employees, he said that taxpayers should be served with utmost honesty. Taxpayers should not feel that they are being oppressed in any way. Strict action will be taken if any complaint of irregularities is received against anyone.

The NBR said in a press conference that this year, an initiative has been taken to build a robust VAT system to provide all VAT services at home by making the VAT system completely online. The organization believes that just as students and the public from all over the country ensured democratic liberation by participating in the July-August Revolution of 2024, the people of the country will also ensure economic liberation by being inspired by the same spirit.

Since 2013, ‘VAT Day’ and ‘VAT Week’ have been celebrated on December 10 and 10-15, respectively. Since the introduction of the VAT system, it has been playing an important role in generating domestic revenue. The theme of this year’s VAT Day is, ‘VAT Dev Jane Jane, Ngash Neb Unnayanye’. This slogan mainly emphasizes the widespread participation of the people in paying VAT and their contribution to the economic development of Bangladesh. In line with every year, ‘VAT Day’ and ‘VAT Week’ are being celebrated in the same way this year as well.

Senior officials including members of various departments of the NBR were present at the time.

Expressed their opinions.