Staff Reporter:
The National Board of Revenue is going to make online payment of value-added tax mandatory in phases from January 2022.
Initially, VAT above Tk 1 crore in a challan will be brought under the mandatory e-payment system as part of gradual implementation of e-payment of taxes.
The amount of VAT for mandatory e-payment will gradually be lowered to bring more traders under the system, according to the plan of the NBR.
Earlier on July, 2020, the revenue board launched electronic payment system of VAT to facilitate the payment of indirect tax by traders.
The customs wing of the NBR made e-payment of customs duties and taxes above Tk 2 lakh mandatory from July 1, 2021.
Payment of customs duties and taxes irrespective of the amount will come under the mandatory e-payment system from January 2022.
The income tax wing is also working to make e-payment of income tax mandatory.
The NBR on October 2020 also launched automated challan (a-challan) system, allowing taxpayers to pay taxes and fees online through banking channel and mobile financial services.
The NBR is also considering making the a-challan mandatory for individual taxpayers.
Officials of the revenue board said that the Asian Development Bank had recommended making online payment of VAT above Tk 50,000 using banking channel and MFS to improve efficiency in VAT collection and avoid fraudulent transactions as part of a condition of loan disbursement.
But the NBR has decided to set the amount initially at Tk 1 crore to see the impact of the system, they said, adding that the limit on amount would be reset later based on the responses of the traders and other implications.
Currently, traders can pay VAT online using bank accounts and cards of 16 banks and MFS.
Payment of all types of taxes and duties will gradually be brought under the e-payment system, they said.
They said that implementation of the e-payment system would create a significant improvement in collection of domestic revenue and ensuring transparency.
