Businesses are facing difficulties in submitting VAT returns due to country-wide shutdown induced by COVID-19 outbreak. The deadline for return is April 15, 2020. Staffers of many business houses said their offices remained closed from March 26 in the line with the public holidays until April 25, aimed at slowing the spread of virus. They demanded of the government to extend the time for submission of return and waiver of late fees considering the existing situation. Under the existing VAT law, the businesses require to pay Tk 10,000 late fee for their failure in submission of VAT returns online within the deadline. They are required to pay 2.0 per cent additional taxes as interest on their payable VAT for the delay. On Friday, the National Board of Revenue, or NBR, issued an order to keep VAT offices open from April 12 to 15 to facilitate VAT returns for March. However, many businessmen said such an order is contradictory to the government’s instruction to stay home and avoid unnecessary travel. Against this backdrop, president of the Federation of Bangladesh Chambers of Commerce and Industry, or FBCCI, Sheikh Fazle Fahim sent a letter to the board chairman demanding extension of VAT return submission. Already, many businesses have communicated with the NBR through e-mail and other sources to consider extending the deadline. Talking to the FE, VAT policy member of NBR Masud Sadiq said the relevant law requires businesses to submit return by the middle of each month. Still, the law has a provision for applying to the VAT commissioners seeking extension for a month, he said. “In this situation, the government needs to mobilise revenues as it has already offered stimulus package and other incentives,” he added. He said since government offices are closed, it will require high-level decision on considering the request of businesses. Officials said the government may waive late fees considering difficulties the businesses have been facing during the emergency. “It takes at least two to three working days to prepare papers and documents for submission of VAT returns,” said Daud Faraizy, a lawyer dealing with VAT returns. He said the submission of VAT returns would require movement of officials from one location to another. Convener of VAT and Tax committee of the Bangladesh Tube Merchant Association Solaiman Parsee Faisal said there should be specific instruction from the NBR in this situation. “We cannot submit online return due to our limited capacity as well as the NBR,” he said. Sheikh Abdul Momen, head of finance of Pidilite specialty Chemicals, said businesses will have to prepare a huge number of papers for submitting VAT returns. Currently, all staffers are on leave and head office and factories are closed, which will make it impossible for submitting VAT returns, even though the NBR remains open on those days, he said. “We would need minimum three working days after resuming the normal activity to submit VAT returns,” he added. The neigbouring India has allowed its businesses to submit returns for the months of March, April and May, together in June, he said.
