Automobile Workshop Owners Association has formed a human chain in front of the National Board of Revenue (NBR) demanding the withdrawal of VAT hike. Later NBR decided to accept the demand in the face of protests. On Monday, the members of the association surrounded the NBR building in Agargaon of the capital with the slogan 'I don't want VAT, I want VAT-free life'.
Slogans such as 'We will give tolerable VAT, I will take part in the development of the country', 'Noose around the neck of workshop owners, destruction in the name of VAT' can be seen in the human chain. Engineer Jahangir Alam, president of the association, and others were present in the protest against the increase in VAT rate from 10 percent to 15 percent.
Jahangir Alam demanded, in the interest of sustaining the motor vehicle repair industry and trade facilitation, withdrawing the increased VAT of 15 percent, requesting wholesale allocation on category basis or keeping 5 percent VAT.
Meanwhile, NBR has accepted the demand of the association in the face of human chain. Workshop VAT is being withdrawn from 15 percent to 10 percent as before. This announcement was made by NBR after meeting with NBR Chairman.
On condition of anonymity, an official of NBR told Ajkar newspaper, 'The rate of VAT is being kept as before. Will be notified soon. Details will be given then.'
Jahangir Alam, President of Automobiles Workshop Owners Association in Manabbandhan said, 'Bangladesh is currently going through an economic challenge. In the meantime, we have noted with concern that the government has gazetted on January 9 to increase the value added tax (Musak) and supplementary duty on hundreds of goods and services, including motor garages and workshops, midway through the current financial year 2024-25. On behalf of the business community, we are expressing deep concern over the increase in excise duty and supplementary duty without consultation with the stakeholders. This sudden tax proposal will have a huge negative impact on the overall national economy of the country.
President of Automobiles Workshop Owners Association also said, '100% VAT existed on motor garages and workshops. In order to reduce VAT, before the budget proposal for the fiscal year 2024-25, a meeting was held on our behalf with the National Board of Revenue, Ministry of Finance and various levels of the government including applications. But the government did not consider our request. At present, if the business has an annual turnover of Tk 50 lakh to Tk 3 crore, turnover tax has to be paid. But as per the gazette notification, the annual turnover tax payment limit has been increased to 50 lakh rupees. Motor garage and workshop owners, medium and marginal traders will be affected by this.
Jahangir Alam, President of the Automobile Workshop Industry said, “Automobile workshop owners are keeping the country's communication system running by repairing old cars through hard work and saving foreign exchange by reducing dependence on import of new cars by repairing old cars.”
He said, 'Motor vehicle garage and workshop owners create a skilled population by training unemployed, semi-educated, educated and underprivileged children on their own funding without government assistance. Skilled people have been playing a serious role in the economic development of the country by going abroad to work at high salaries and sending remittances to the country.
The president of the organization said, 'Motor vehicle garages and workshop factories are run by small entrepreneurs who have little capital, less education and are socially backward youth and semi-educated unemployed youth. It is not possible for them to calculate and pay VAT.'
Jahangir Alam said, 'Automobile workshop owners repair cars by renting space from others. But instead of determining VAT on the owner of the premises, VAT has been imposed on the workshop owners. Workshop owners are sustaining this industry by repairing cars and keeping the country's communication system running, so I am appealing for withdrawal of VAT on space rent.'
