Platforms of internet giant like Facebook, Google and You Tube are being brought under VAT law with effect from July 1. To impose tax on advertisement given in these platforms the government has taken the initiatives. Concerned said, as a result such types of companies have to appoint representatives or to open office in Bangladesh very soon. The government will collect VAT from them. VAT Online Project Director of National Board of Revenue (NBR) Syed Mushfiqur Rahman said, the government is not getting mentionable VAT from video streaming site like You Tube. He said, in fact they have not opened any office in Bangladesh. But after enacting the law they have to open office or appoint representative. According to the information of e-commerce association, e-CAB, more than 50 thousand facebook pages are associated with e-commerce in Bangladesh. Although the number is more than that in real. According to e-CAB, each of the e-commerce firms spend at least 8 dollars to 10 thousand dollars per month for digital advertisement and yearly the expenditure is nearly 1 lakh dollars. But the government is not getting mentionable money from that. The government can collect handsome amount of revenue from this sector if the new law is effective. AH     

The income that generate from ride sharing service like Uber and Pathao should be brought under tax net. This was proposed by the Finance Minister. Tax will be imposed at the source of income. The Finance Minister also proposed for obtaining Tax Identification Number (TIN) and return submission obligatory for the transport owners who provide the service. As a result the vehicle and motorcycle owners who provide ride sharing under Uber, Pathao, Sohoz, Ovai and others have to be listed under tax net. But there is a chance for tax adjustment if their incomes do not cross the tax free limit while submitting return. Although it is feared that if the tax is imposed at source then it will be collected from the service users at any way. The number of registered transport in this sector is over one lakh. Due to the proposal of Finance Minister they have to be registered under tax net for compulsory. AH       

There will be endeavors in the upcoming budget for fiscal year 2018-19 to expand tax net to boost revenue earnings instead of increasing tax rates, said National Board of Revenue (NBR) chairman Md Mosharraf Hossain Bhuiyan.  ‘Incentives affect revenue earnings . . . yet we are thinking that if incentives are given, investment will increase that will create jobs, help expand exports. Overall trade and industrialization get expedited,’ said Bhuiyan while speaking at a luncheon meeting in Dhaka on Tuesday. Reports BSS.  American Chamber of Commerce in Bangladesh (AmCham) organized the meeting styled ‘National Budget in the evolving graduation of Bangladesh from a Least Developed Country to a developing country’. AmCham president Md Nurul Islam chaired the meeting which was addressed by AmCham vice-president Shadab Ahmed Khan.  NBR chairman said Bangladesh has no alternative to increase local and foreign investments to be a developed nation finally. The government is encouraging foreign investment to strengthen industrialization, he said, adding that the NBR is planning to take some positive steps in this regard during preparing the next budget.  Mentioning that using of Electronic Cash Register (ECR) machine will be made mandatory for all business establishments to check dodging of Value Added Tax (VAT), he said many businesses collect VAT from people but do not deposit the money properly to government exchequer. Those businesspeople consider the collected VAT as profits, he said and urged them to desert such mentality.  He said that the NBR had tried to make the use of ECR machine mandatory in the past but it failed to do so. Now NBR is adamant in this regard and every business house must have ECR machine, he added. AmCham president Nurul Islam proposed to cut corporate tax to increase investments in the country. AH

National Board of Revenue (NBR) Chairman Md. Mosharraf Hossain Bhuiyan has said that CNG run auto rickshaws and other three wheelers to be brought under tax coverage in the budget of 2018-19 fiscal year. He said this at a pre budget discussion with automobiles and transport businessmen at the NBR meeting room in the capital on Thursday. He said, from next fiscal year the Tax Identification Number (TIN) will be made obligatory for the three wheelers owners. In the meeting Md. Ansar Ali, president of Four Stroke CNG run Auto rickshaw and Three wheelers Owners Association Bangladesh said, CNG run auto rickshaw owners should have trade license. As well as owners should have brought under tax net. Besides CNG auto rickshaw should come under app based service. He said that they should be association member and get the certificates. There were 32 thousand CNG run auto rickshaws but the number is at present 20 thousand. Leaders of Bangladesh Automobile Workshop Owners Association, Four Stroke CNG run Auto rickshaw and Three wheelers Owners Association of Bangladesh, Bangladesh Road Transport Owners Association, Bangladesh Motor Parts and Tire Tube Business Association and others organizations took part in the meeting. AH