Md Joynal Abedi Khan
The government has proposed to slash the fine for evasion, failure or anomaly of Value Added Tax for the 2021-2022 fiscal year.
Finance Minister AHM Mustafa Kamal proposed to reduce the fine from “twice the amount of revenue” to “equal amount of revenue” associated.
He placed a proposed budget of Tk 603,681 crore in parliament on Thursday outlining measures to save lives and create more jobs so that people can cope with the fallout of the Covid-19 pandemic.
He noted that excessively stringent law creates functional complication and eventually hamper business activities.
The minister proposed to reduce the amount of fine and rate of interest on arrear VAT in the Value Added and Supplementary Duty Act-2012.
He also proposed to reduce the monthly rate of interest charged on arrear VAT from ‘2 per cent’ to ‘1 per cent’. The yearly interest rate will be fixed at 12 per cent instead of existing 24 per cent, he said.
