We think the National Board of Revenue (NBR) must streamline the Value Added Tax (VAT) collection system to increase the revenue earnings for the upcoming fiscal 2021-22 (FY22). Therefore, no one will be spared if one does not pay VAT despite being eligible.
Bangladesh Post on Wednesday ran a story headlined “NBR plans to widen VAT net, not raising rate” saying such initiative will boost revenue collection. We think the NBR, the central authority for tax administration, has concentrated on its efforts to increase the country’s revenue earnings that will play a major role in combating the ongoing Covid-19 pandemic because it is important to save lives and also the national economy right now. We also think the NBR must have higher administrative efficiency and manpower to ensure better monitoring and improved services to the taxpayers.
Industries and businesses will have to be more
compliant which will create a space of belief and
confidence between the businesses and NBR
As the pandemic has posed a threat to people's lives and battered the economy, forcing the government to spend huge amounts of money to buy medicines, ensure enough hospital beds and increase the number of doctors and nurses alongside giving incentive to the people in all sectors, expansion of VAT net is very crucial.
Apart from keeping the economy and lives alive, the government has also been continuing with the development projects by formulating necessary plans and policy supports as it is committed to make Bangladesh a prosperous and developed country by 2041. In this regard, the NBR will have to assure the eligible people of taking all out measures on VAT process simplification which will reduce complications and increase revenue generation.
industries and businesses will have to be more compliant which will create a space of belief and confidence between the businesses and NBR.
