VOP VAT

Abstract

The National Board of Revenue (NBR) are taking steps towards strengthening the existing efforts of the Government of The People’s Republic of Bangladesh (GoB) in the area of public financial management reforms. The current VAT system of Bangladesh needs to be restructured due to outdated administrative practices. In order to overcome certain challenges, a new VAT Law was passed by the National Parliament in November 2012. The Government of Bangladesh approved a World Bank funded Development Project – VAT Improvement Program (VAT Online Project) in 2014. The developing system by VAT  Online project will connect 287 VAT circle offices, 84 divisional offices, 12 commissionerates, two directorates, three appeal commissionerates and a tribunal in a single platform. It will also integrate with the Bangladesh Bank, the Office of the Comptroller and Auditor General (CGA) and the income tax department of NBR with it. Once automated, the system will substantially increase government revenue through identifying non-compliant taxpayers. It will also work to ensure revenue mobilization and transparency in the VAT administration system as well as a modern tax administration.

Project Info

Project Objectives

• Ensure Revenue Mobilization.
• Make a easy  business process  to comply with the new VAT law
• Capacity Building of  NBR  to identify non-compliant taxpayers
• Establish a  modern, well-disciplined  and service-oriented VAT administration
• Ensure Transparency in the  VAT administration system.
• Facilitate rapid industrialisation of the country
• Decrease cost-of-doing-business both in Public & Private sectors
• Encourage more investment in private sector