VAT on commercial space
In the last budget the govt imposed 15 percent VAT on commercially rented space, establishment and machinery. VAT or value added tax introduced by late Saifur Rahman was aimed to collect more taxes from the business people. It is a different form of sales tax. It really baffles us all how a commercially rented space adds value to the business of the tenant or the owner. The owner is already paying ATS (tax at source), City Corporation tax, income tax at increased rate, an amount which eats up a major portion of the income. The tenant engages in business and pays VAT again on products sold, his or her turnover, income tax etc. The owners have been directed to collect VAT from the tenants and deposit it to Bangladesh Bank. If they fail to collect VAT from the tenants the owners have been ordered to deposit VAT from their own pocket. What a mad, desperate, illogical, illegal and sick directive !! How our tax people can justify VAT on commercially rented space? In their bid to expand the VAT net the overzealous tax people have taken undue liberty. This is a totally illegal tax imposed on persons concerned.
We would request the finance minister to review the matter and withdraw the illegal VAT imposed on commercially rented space immediately.
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