Tk 100bn more tax revenue likely from foreign firms: Tax lawyers

Staff Correspondent

11 June, 2021 12:00 AM printer

The government is likely to earn additional Tk 100 billion from the foreign companies without local offices as the government has planned reforms in its fiscal policy, the tax lawyers said.

“The government in the past lost huge revenue from the multinational companies, especially Google, Facebook and Amazon. But in the upcoming fiscal year, the government will be able to earn additional Tk 100 billion as it has empowered the Value Added Tax agents,” said Bangladesh Vat Bar Association president Dr Nurul Azhar at a press conference at Jatiya Press Club in Dhaka Thursday.

He said earlier that a Value Added Tax agent was made liable to pay fine in case of the unwillingness of the multinational companies to pay the tax to state coffer.  “As a result, the agents showed unwillingness to process the files,” he said.

The BVBA also urged the government to reconsider 2 percent VAT on liquefied petroleum gas (LPG) to keep the market stable apart from controlling food inflation.

Finance Minister Mustafa Kamal placed the national budget worth of Tk 6.03 trillion with revenue target of Tk 3.3 trillion. It has a record deficit of Tk 2.14 trillion.

Lawyers in the VAT sector placed 11-point recommendations apart from appreciating the reformation in finance bill which enables the non-residence multinationals to registration with local revenue body.

The association director Sheikh Azizul Haque said the country has entered into a new era of tax collection from the multinational firms like Google, Facebook and Amazon which “siphoned off huge amount of money abroad skipping the NBR rules.

“From now, the local VAT agents have begun contributing to enrich local exchequer through connecting the non-residence companies to tax system,” he said.

He said currently some 21 authorised VAT agents are working in the country.

BVBA general secretary Hafizur Rahman, among others, was also present at the event.