VAT registration is not mandatory for a business with an annual turnover of 30 to 50 lakh taka. But such a business must take an “enlistment certificate” instead of VAT registration and pay VAT at 4 percent on turnover. Businesses with turnover below 30 lakh need neither VAT registration nor an enlistment certificate. As a result, a business with turnover below 30 lakh pays no VAT of any kind. The proposed budget for the coming fiscal year plans to remove this turnover threshold and bring almost all businesses under VAT.
According to sources concerned, a fixed VAT will be imposed instead of the 4 percent turnover VAT. The amount could range from 1,000 to 10,000 taka a month, so a business would have to pay 12,000 to 120,000 taka a year in VAT.
Speaking on condition of anonymity, a senior NBR official told Amar Desh: “In our country, shopkeepers sell goods at the maximum retail price (MRP). Along with the business commission, VAT is also included in that retail price, so they are taking VAT from buyers. But not all shopkeepers deposit that VAT in the government treasury. We do not want to collect that VAT from small traders right now. But we want to bring under VAT those businesses that need an ‘enlistment certificate.’ For this, there will be a proposal to remove the current 30-to-50-lakh turnover threshold. Whatever the turnover, a business holding an enlistment certificate will have to pay VAT.” Instead of the 4 percent turnover VAT, businesses will pay a fixed VAT.
NBR sources said that if a business needs to open a bank account, provides mobile financial services, needs a trade licence, or has to become a member of any trade body, it must take an enlistment certificate. And even if such a certificate-holding business has an annual turnover below 30 lakh, it will have to pay VAT.
NBR officials said there is currently a 15 percent VAT on rent. If a business pays the fixed VAT, it will no longer have to pay this VAT on rent separately — the rent VAT will be included in the fixed VAT. For businesses with an annual turnover above 50 lakh taka, VAT registration is mandatory and VAT is paid at 15 percent on turnover.
According to sources concerned, after value-added tax (VAT) was introduced in 1991, the National Board of Revenue (NBR) took steps to bring businesses under registration. But in 35 years only about eight lakh businesses have come under VAT registration, of which 65 to 70 percent file VAT returns. In the coming fiscal year, the NBR plans to bring 20 lakh businesses under VAT registration.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report