New VAT law in July, 2016
09 March 2015, Nirapad News: The government is set to implement the new Value Added Tax (VAT) law in July 1, 2016, said Finance Minister AMA Muhith.
“The government will enact the new law, which will impose a single VAT rate at all levels, instead of the
multiple rates — from import or production level to retail level,” disclosed the minister while talking to
journalists after holding meeting with a delegation of International Monetary Fund on Monday.
“The annual turnover will be increased from Tk 24 lakh to Tk 30 lakhs,” said Muhith.
The six-member IMF team led by Rodrigo Cubero, deputy division chief in the Asia and Pacific Department of the lender, met the minister at his secretariat office in the afternoon.
The law, formulated as per the 2009 announcement of VAT reforms, has been passed by the Parliament and was due to be implemented from July 1, 2015.
The government also cancelled the tender for VAT automation works over allegations of irregularity in the process.
Besides, the government also failed to appoint a foreign audit firm to evaluate financial status of the
country’s lone fuel oil importer Bangladesh Petroleum Corporation. This was one of two main conditions set under the ECF programme.
Earlier in the month, the IMF came up with the dissatisfaction at an initial meeting on government reforms committee at Finance Division’s office in Dhaka.
The reforms committee is dealing with the matters like implementation of new Vat law.
Two tranches of IMF fund of around $280m under the ECF now hang in the balance as some conditions still remain unmet.
Finance Division officials said BPC selected a local auditor to assess its financial status and prepare an
annual report, but the global lender preferred an international audit firm.
On September 23 last year, regarding Vat reforms, Muhith said the government would not be able to complete VAT reforms program by June 2015.
He said it might be delayed to June 2016.“But I am not sure whether IMF will agree with me.”