- The NBR is considering scrapping the newly introduced quarterly VAT return/payment system and restoring monthly VAT returns and payments.
- The move is driven by field-office concerns over weaker monitoring, operational difficulties, and higher revenue-risk under the quarterly regime.
- Under the quarterly system, businesses can hold VAT collected from customers for up to three months before remitting it, compared with about 30 days under the old monthly system.
- Officials say this could let larger businesses earn interest or otherwise use government VAT funds before payment, while the state bears borrowing costs.
- VAT collections fell sharply in July-August, but officials said it is still too early to conclude the quarterly system is the cause.
Source: thedailystar.net
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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