VAT audit to remain suspended indefinitely if needed: NBR chairman

National Board of Revenue (NBR) chairman Abdur Rahman Khan has said VAT audit is to remain suspended indefinitely before the launching of the automation system if needed.

He said, “The businesspersons and conglomerates should not think in any way that this has been done to harass them without any reason. We are working on this.”

The NBR chairman said this while addressing a dialogue on 'Reform in Corporate Tax and VAT' reform as the chief guest. The event was organised by the Centre for Policy Dialogue (CPD) held at a hotel in the capital’s Gulshan on Tuesday. CPD research director Khondaker Golam Moazzem moderated the dialogue.

NBR chairman Abdur Rahman Khan, “We want to set a uniform VAT rate. But it is the businesses that stand in the way. Now, VAT can be paid with just one click from one’s own system without having to go anywhere.”

Speaking about tax exemption, NBR Chairman Abdur Rahman said, “To increase employment, we invite local and foreign companies to invest by offering tax exemption. But what we see is that although the exemption is supposed to last for eight years, it continues for up to 40 years. There is inefficiency in revenue management, which we must acknowledge and move forward with.”

According to him, the burden of foreign loans has increased significantly. If domestic revenue cannot be raised, repaying those loans will also become dangerous.

On revenue sector reforms, the NBR chairman said, “I have noticed that 90 per cent of the time is spent on various policy-related issues. Then how will there be time for revenue collection? That is why I am splitting the revenue sector into two divisions. If two people work instead of one, I hope the situation will improve.”

Terming the minimum tax provision as a “draconian law,” the NBR chairman said it would be scrapped in the future. “But if we do it now, revenue collection will drop a lot. Once the minimum tax comes under discipline, then we can touch it.”

Business leaders, entrepreneurs, and experts were present at the dialogue.