President of the apex trade body FBCCI Shafiul Islam (Mohiuddin) said Monday he has been assured by finance minister A M A Muhith that the marginal businesses would not be affected by the enforcement of the new VAT and Supplementary Duty (SD) Act.
"The minister told me that the marginal businessmen won't be affected. But he didn't elaborate how they won't be affected," newly-elected president of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Shafiul Islam (Mohiuddin) told the FE.
The FBCCI chief met the minister at his secretariat office on Monday to express the concern of business community over enforcement of the new act.
The government is firm to enforce the new VAT and SD Act from July 01. The new law is set to introduce a uniform 15 per cent value added tax (VAT) rate.
The FBCCI chief said he told the finance minister that enforcement of the new act hurriedly without addressing the concern of the marginal business community will not be a right thing. "The minister said he will ensure that they are not affected."
Mr Mohiuddin, quoting the minister, said the turnover tax ceiling will be raised from Tk 8.0 million to more than Tk 10 million. But Mr Muhith did not make it clear how much the amount is going to be raised.
This is the way how the minister wants to compensate for the possible financial woes of the small businesses, he said.
Asked whether they were happy with Mr Muhith's assurance, the FBCCI chief said: "At this stage we have nothing to do but to wait and see what happens."
"So, we are hopeful that the government won't do anything that goes against the interest of business community and common people."
Mr Mohiuddin further said it is obvious that there are challenges regarding how the revenue shortfall will be covered, if the VAT rate is downsized.
"Altogether, we want to see how the budget and the law are designed," the FBCCI chief added.
http://print.thefinancialexpress-bd.com/2017/05/30/173917