NBR Halts Manual VAT Audits to Prevent Corruption, Plans Automated System Implementation

• NBR has suspended manual VAT audits to prevent corruption.
• The suspension will continue until an automated audit system is developed.
• Current VAT law is described as inefficient due to past business objections.
• Tax evasion in 2023 was Tk 2.26 trillion; total NBR collection in FY25 was Tk 3.71 trillion.
• A single VAT rate with a rebate mechanism is proposed to ease taxpayer burden.
• One-third of taxpayers who have never been audited will be randomly selected each year.
• Issues highlighted include loopholes in the manual tax system and harassment by officials.
• Taxpayers expect better use and transparency of their tax money.
• The tax-to-GDP ratio declined to 6.6 percent in FY25.
• NBR’s structure needs bifurcation for better efficiency.
• Automation is needed for VAT refunds to reduce delays.
• Some companies show positive cash flow while enjoying tax incentives.
• Efficient rebate systems are more important than multiple VAT rates.
• CPD suggests maintaining corporate tax above 15 percent and abolishing minimum tax long-term.

Source: thefinancialexpress.com.bd

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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