New VAT law from July: Kamal
The new VAT law with multiple rates will be implemented from July, said Finance Minister AHM Mustafa Kamal yesterday -- clearing uncertainty among the business community on when the much-delayed rule would finally take effect.
Earlier in June 2017, a couple of days before it was due to take effect, the government had shelved the implementation of the VAT and Supplementary Duty Act 2012, which stipulated a flat 15 percent VAT for most of the goods and services available in the country, by two years.
Later in December last year, then finance minister AMA Muhith at an event to honour the top VAT-paying firms said the new law would be implemented by 2021, creating confusion among the public.
Kamal reiterated that the uniform rate, which was the initial premise of the new law, would not be applied; there would be multiple rates.
The stakeholders will be consulted before the roll-out, he said at a seminar marking the International Customs Day, organised by the National Board of Revenue at the Bangabandhu International Conference Centre.
No import consignment would pass the port without scanning, he said.
NBR Chairman Md Mosharraf Hossain Bhuiyan said a probe team has been formed to investigate the incident of missing of at least 295 consignments from a restricted area of the Chattogram port.
The consignments were among the 5,584 unreleased shipments that arrived at the port between July 2016 and November 2017. The goods were supposed to be put up for auction as the importers did not receive them within the deadline.
The missing goods include chemicals, plastic products, vehicles, auto parts, electronic equipment, food items, leather goods, construction materials, ceramics and machinery. They came in 425 containers from several countries, including China, India and the UK, said customs officials.
“No anarchy would be tolerated. Be it government officials, dishonest traders or clearing and forwarding agents, none will be spared,” Bhuiyan said. Mis-declaration and evasion would not be allowed, he added.
Commerce Minister Tipu Munshi said the economy would not be able to take strides without duty-free import benefit for raw materials under bonded warehouse.
“Let us not make good businesses suffer for a dishonest business.”
The government is working to ease the process of doing business. “We have to make our processes modern so that we do not fall behind,” he added.
Prime Minister's Economic Affairs Adviser Mashiur Rahman suggested the easing of rules related to customs.
Shafiul Islam Mohiuddin, president of the Federation of Bangladesh Chambers of Commerce and Industry, said the business community whole-heartedly supported the development drives of the government.
“It is a disgrace to be in the bottom of the Ease of Doing Business ranking,” he said, while calling for a harassment-free tax and revenue administration.
Trade will continue to be the right path for Bangladesh, said Wendy Jo Werner, the International Finance Corporation's country manager for Bangladesh, Bhutan and Nepal.
At the event, Benapole Port, Bangladesh Ansar and VDP, the FBCCI, the Airline Operators Committee of Bangladesh and the Federation of Bangladesh Customs Clearing and Forwarding Agents Association were honoured with WCO Certificate of Merit.
As per its modernisation plan, the NBR has signed an understanding agreement with 39 agencies that are related to facilitating cross-border trade to open a digital portal called National Single Window (NSW) to provide one-stop service to businesses, according to a keynote presented at the event.
The NSW is expected to be opened by 2020, it added.
The customs has also taken steps to award firms the title of Authorised Economic Operator (AEO) in order to speed up trade. An AEO will get the privilege to release import and export goods faster than others.
The NBR has also formed the Post Clearance Audit (PCA) units at field offices of customs and opened systems of advance ruling with the objective of helping businesses become aware of the Harmonised System (HS) Code of the product prior to imports.
To provide answers to queries of businesses, the NBR has also opened a system termed National Inquiry Point, according to the keynote.
The day was also observed in the port city, where stakeholders expressed strong resentment on the shortage of manpower and scanner machines at the Chattogram port that have been causing unnecessary delays in taking delivery of imported goods.
“There are only four gates equipped with scanning machines out of a total of 12,” said Mahbubul Alam, president of the Chittagong Chamber of Commerce and Industries.
An initiative was taken to purchase at least six scanning machines five years back but they are yet to arrive, reports our correspondent from the port city.
In the last 10 years, international trade has doubled but manpower at the port has not increased, said Altaf Hossain Bachchu, general secretary of the Clearing & Forwarding Agents Association.
The International Customs Day was celebrated in Benapole Customs House as well with the theme “smart border system for free trade, travel and transport”.
A seminar, rally and meeting to raise awareness was organised as part of the day's celebrations, our Benapole correspondent adds.
