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Govt plans to simplify tax rules

Published : 10 Dec 2021 09:30 PM | Updated : 11 Dec 2021 04:55 PM

Finance Minister AHM Mustafa Kamal has said that laws and regulations should be simplified to facilitate people to pay their taxes without any hindrance.

He made the remarks while addressing a function on the occasion of National VAT Day and VAT Week at the Institution of Diploma Engineers auditorium in the capital on Friday. 

"People want to pay taxes, but they are afraid," he said at a function organized by the National Board of Revenue (NBR). 

We need to ensure an environment where they can pay their taxes smoothly, he mentioned. 

"For this, the law has to be simplified. Then people will come forward to pay taxes," he further said. 

At the ceremony, the highest VAT payers at the national level were honored. This year, 525 traders across the country were selected as the best VAT payers. 

The 9 best VAT payers of Dhaka were honored on Friday. 

The finance minister handed over the award to them. 

NBR has been observing National VAT Day since 2013 to motivate the people to pay VAT.

The theme of this day is 'Pay VAT online, take part in nation building'. 

VAT is the largest source of internal resources. 39 percent of the total revenue collected through NBR comes from VAT. 

In the last financial year, the revenue collected was Tk 2,62,000 crore. Of the amount, the contribution of VAT was Tk 97,000 crore. 

Quoting King Louis XIV, the finance minister said, "There is no harm in raising as many swan feathers as you like, but care must be taken so that the ducks do not get hurt." 

Addressing the revenue officials, the finance minister said, "Our goal is to increase revenue. In doing so, care must be taken so that people do not suffer. The law should be simple and the revenue should be collected by increasing the quality of service." 

Elaborating on the increase in revenue, he said the country had collected Tk 44,131 crore in the fiscal year 2005-06. In the fiscal year 2020-21, it has increased to Tk 3,28,000 crore. 

"This is our great achievement. Now it's our turn to move on. We have to go far, he mentioned. 

NBR chairman Abu Hena Md Rahmatul Muneem presided over the program while Jasim Uddin, President of FBCCI, was the special guest on the occasion. 

NBR VAT Member (Policy) Masood Sadiq presented the keynote address on the occasion of VAT Day. 

FBCCI President Jasim Uddin said, "VAT collection tactics by issuing harassment, demands and notices are not conducive for traders, but strict action must be taken against those who deliberately evade." 

Suggesting expansion of VAT offices to the upazila to increase the collection, he said adding, "There are many institutions that are able to pay VAT. All of them have to be brought under control." 

Speaking on the occasion, the NBR chairman said, "Many people oppose tax breaks; I do not support that. Tax exemptions are required. Because it involves production and employment. However, the benefits should be given by sorting." 

Administrative activities have been initiated to increase the capacity of the revenue department, he said, adding that this will fill the shortage of manpower at the field level. 

Among the companies that have been honored as the highest VAT payers are Aristo Pharma, Square Toiletries, SM Motors, AMCO Bajaj International, Golden Plaza, Maps Union, E-Dotco Limited, Gray-Advertising Bangladesh Limited and Robot Boss Bangladesh Limited.

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