Home ›› 09 Dec 2022 ›› Front

Tax exemptions to industries will continue: NBR

National VAT Day on December 10
Staff Correspondent
09 Dec 2022 00:00:00 | Update: 09 Dec 2022 00:20:24
Tax exemptions to industries will continue: NBR

The National Board of Revenue (NBR) will continue tax exemption in the name of policy support aimed at expediting industrialisation in the country and boosting local production, says its chief Abu Hena Md Rahmatul Muneem.

The NBR chairman made the remarks while speaking at meet-the-press held at its conference room on Thursday, marking the National VAT Day that falls on December 10 and the National VAT Week which will be observed from December 10-15.

“We say tax exemption as policy support is required for smooth industrialisation, employment generation, investment growth and continual overall development,” he said, adding, “policy support will be gradually reduced at rational level so that local production does not face disruption at all.”

“We have explained to the International Monetary Fund, the lending agency, that it cannot be possible for us to withdraw exemption from all the sectors together. Rather it will be minimised gradually and we have reduced some policy supports every year.”

Muneem further said, “Policy support is not static for all time and it is provided as part of fiscal policy which existed in every corner of the world for increasing local production.”

Mentioning that the ongoing economic headwinds, triggered by Russia-Ukraine war and political turmoil, will affect the revenue collection he said, “The NBR and our officials will combat the unwanted situation as the economic challenges were also in the previous year, especially during the Covid-19 pandemic, but we ensured the revenue growth. This time we also keep the growth at expected level.”

“NBR will meet the stakeholders and the officials concerned to understand the usefulness of VAT automation and the difficulties during the use of its module. A lack of motivation, habit and training is a key reason behind less use.”

Stressing the need for increasing awareness among the consumers to make them aware of chalan issued by NBR, the revenue boss added that the VAT day and week will also help bridge the gap between VAT officials and VAT payers.

Besides, NBR will strive for ensuring VAT automation, he said, adding that it will help widen VAT net.

Currently, NBR contributes 86 per cent of the country’s total revenue collection target, of which 37 per cent comes from VAT.

VAT payers will get special services, including e-payment, return submission, issuing chalan and VAT related issues, during the VAT Week. The registration activities will be running in the field offices to widen VAT net.

This year the theme of the VAT Day is “Unnayaner VAT niti, VAT diye gorbo jati”. The NBR will award nine companies on the day for paying highest VAT at national level and 120 firms at district level for FY21.

×