- NBR plans to develop a centralized VAT application to help businesses comply with digital tax regulations and improve VAT collection.
- The system aims to assist smaller businesses that cannot afford their own VAT software.
- The government will invest in and maintain the software, allowing businesses to input transaction data and generate VAT returns automatically.
- The system will provide a uniform platform for all businesses, integrating with existing systems for larger companies.
- The initiative seeks to address VAT non-compliance and improve revenue collection, which has been below target.
- Recent VAT and duty hikes on over 100 goods and services aim to address the budget deficit and meet IMF loan conditions.
- Essential items are exempt from additional VAT to balance the tax burden and stabilize market prices.
- Experts are cautious about the effectiveness of VAT increases amid economic challenges and high inflation.
Source: observerbd.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
