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The Financial Express

Businesses allowed to adjust stockpiled deposits at tax offices

| Updated: March 03, 2021 14:38:08


Businesses allowed to adjust stockpiled deposits at tax offices

The revenue board has allowed businesses to adjust their stockpiled deposits worth Tk 25 billion at field-level VAT offices at a threefold higher rate to facilitate them.

From now on, businesses will be able to adjust the blocked amount at a 30-per cent rate with their payable VAT every month, which was 10 per cent earlier.

To this end, the VAT policy wing of the National Board of Revenue (NBR) issued a gazette notification, amending the VAT and Supplementary Duty Act-2012.

VAT member Md Masud Sadik signed the gazette, dated February 24.

A senior official of the VAT wing said they have amended the law following a plea by the businesses to help keep the smooth flow of their capital.

It might take a decade to adjust the blocked VAT at a 10-per cent rate unless an amendment to the law by increasing the adjustment rate, he said.

The amendment would help expedite adjustment of the additional balances of businesses at VAT offices, the official added.

However, the businesses have sought refund of the amount that is deposited under the 'account current system' of the VAT Law-1991.

The previous law stipulated that businesses keep a certain amount in their respective accounts maintaining an account register, known as mushak-18, at their respective VAT offices.

Businesses were not allowed to supply goods from their factories or warehouses unless they paid VAT in advance to keep balances on the account positive.

But the provision was abolished with the implementation of the new VAT law in 2019 following widespread criticism from VAT payers.

Under the new law, they are now allowed to adjust the amount at the highest 10 per cent of payable input tax with VAT returns submitted by 15th of every month.

 

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