VAT on import-export fees must be submitted using prescribed codes
The Bangladesh Bank on Thursday issued a circular to this effect, asking banks to remain watchful
The Bangladesh Bank has asked banks to make sure that the value added tax (VAT) levied against the registration and renewal fees at the Department of Import and Export Control is deposited using the prescribed invoice codes.
The Banking Regulation and Policy Department (BRPD) of the Bangladesh Bank on Thursday issued a circular to this effect. The Office of Chief Controller of Imports and Exports had earlier published a notification in this regard.
At present, many people are using wrong invoice codes while paying VAT recoverable against various certificate registration and renewal fees from all the regional departments under the import and export department, according to the circular.
It says even though there are specific invoice codes for regional offices, many people are not submitting VAT using the correct codes. The VAT of one region is being deposited in the office of another region, giving rise to various complications.
To resolve the complexities, the Bangladesh Bank has instructed banks to accept the invoice to make sure that the specific code has been written in the VAT invoice.
VAT is now the biggest source of revenue. In the current financial year, the government has set a target of raising the highest amount of revenue worth Tk1.25 lakh crore from this sector. Then there is income tax. The revenue generation target from this sector has been set at Tk1.03 lakh crore.
The National Board of Revenue has set a revenue target of Tk3.30 lakh crore for the current fiscal year.