As part of tax reform the Dhaka Chamber of Commerce and Industry (DCCI) in Tuesday last proposed to introduce tax cards for all taxpayers based on the amount they contribute annually to the national coffer.
The chamber proposed six categories of tax cards — green card, green plus, silver card, gold card, gold plus and platinum card — could be introduced for different categories of taxpayers.
“Eventually, the tax cards may be converted into electronic smart cards having all the information of the taxpayers. It can also be used as a debit card for payment purpose,” DCCI President Abul Kasem Khan said. “If we recognise all eligible taxpayers with tax cards featuring benefits, it will encourage individuals and businesses to pay more taxes, thus improving the overall tax collection.” The chamber placed the demands at a meeting with senior officials of the National Board of Revenue at the NBR’s headquarters in Dhaka.
NBR Chairman Md Nojibur Rahman said the DCCI’s proposal would be placed to the finance minister for consideration. The DCCI said it supports the online VAT payment system and the introduction of modern method of tax collection.
The chamber also reiterated its demand for fixing the VAT rate at 7 percent from the existing 15 percent under the VAT and Supplementary Duty Act 2012.
Nojibur Rahman suggested businesses to take preparation for the new VAT law as the government will start implementing it from July 1 this year.
The DCCI said a simplified VAT assessment and payment system with rationally reduced rate is needed to make businesses more competitive. Khan demanded raising the VAT-free annual turnover limit to Tk 50 lakh for small traders from the existing Tk 30 lakh under the new VAT law.
The trade body also called for enhancing the turnover tax limit to Tk 1.20 crore a year from the existing Tk 80 lakh. The chamber leader urged the government to provide electronic cash registers and point of sales machines to traders free of cost to encourage them to carry out their transactions digitally.
It also recommended the revenue authority take steps to create awareness so people can understand the VAT and tax related laws easily.
The DCCI president suggested the NBR introduce VAT smart cards to encourage businesses to comply with the VAT rules and pay taxes properly.
Source; Weekly Holiday
