Sangsad Bhaban, June 13, 2019 (BSS) – Finance Minister AHM Mustafa Kamal in
his budget speech today proposed to implement the Value Added Tax and
Supplementary Duty Act, 2012 from July 1, 2019.
“We are going to implement our long-awaited Value Added Tax Act, 2012 from
the coming fiscal year (2019-20). To ensure effective implementation of this
Act, we will provide all types of logistical support including necessary
manpower,” he said while placing the national budget for 2019-20 fiscal in
the Jatiya Sangsad today.
Proposing for implementing the VAT system in six tiers, he said a Joint
Working Group will be constituted comprising representatives from the
government and the private sector, which will oversee the implementation of
the law.
Along with the standard VAT rate of 15 percent, there will be reduced
rates of 5 percent, 7.5 percent and 10 percent for specific goods and
services, Kamal added.
Considering the possibility of inflation, he said, specific taxes have been
fixed for some specific products and services.
The VAT rate has been fixed at 5 percent for the local traders and as a
special measure, considering the sensitivity of the product, the rate of VAT
at the trading stage of pharmaceutical and petroleum products shall be 2.4
percent and 2 percent respectively.
The minister said the new Value Added Tax and Supplementary Duty Act, 2012
has been formulated in line with the international best practices. It will
make a significant improvement in the “ease of doing business” index, he
added.
In the new act, he said, taxpayers would have the opportunity to get
online service for VAT and Turnover Tax registration, tax payment, return
submission and refund.
The existing price declaration system before the supply of goods will be
abolished and the taxpayers will pay VAT on the basis of fair market price,
he added.
The finance minister said currently there is a provision to maintain
sufficient balance in the Account Current Register while supplying the goods.
However, according to the new law, there is no such provision and the
businessmen will be able to pay tax at the end of the month through the VAT
returns, he said.
Kamal said wherever 15 percent VAT is applicable, the input tax credit can
be obtained through the VAT return and return will be treated as the
application of refund.