The National Board of Revenue yesterday awarded nine firms for depositing the highest amount of value-added tax to the state coffers in fiscal 2014-15 nationally, in a move to motivate others to follow their lead in compliance.

Some 124 firms from the district level were also honoured at a ceremony held at the NBR's new headquarters in Agargaon, Dhaka.

“The payment of VAT and income tax is to serve the country. We should see this from this perspective," said Finance Minister AMA Muhith at the event.

The revenue authority organised the event as part of its campaigns such as VAT Week and VAT Day. This is the 11th year in which the NBR has been recognising firms that paid the highest amounts of VAT in categories of manufacturing, trade and services.

At the programme, Muhith said Bangladesh is now in the group of middle-income countries and 60 percent of its 16 crore population are living well. But the number of firms paying VAT is very low.

The latest economic census shows that the total number of business establishments is 80 lakh, he said, adding that the number of people who submit VAT returns stand at about 50,000.

"The current figure of VAT return filers is shameful," he said, adding that the number of VAT registered firms should be 5 lakh by 2021.

"This will be the target. I throw

this challenge for all," Muhith said referring to the revenue authority and businesses.

He gave the task at a time when the NBR is working to implement the new VAT and Supplementary Duty Act 2012 from July 1 next year under an automated platform.

For that end, it has already launched re-registration online.

The latest law will replace the existing one that was framed in 1991 to collect VAT, a type of consumption tax, with the goal to boost collection from domestic sources against the backdrop of declining customs revenue for gradual trade liberalisation.

The consumption tax is the biggest source of revenue followed by direct or income tax. It accounted for 36 percent of revenue collection in fiscal 2015-16,

according to the NBR.

The NBR expects that both the VAT net and collection will rise for the implementation of the new law under an online environment.

The law, which envisages a flat 15 percent VAT, will encourage voluntary compliance and reduce discretionary powers of VAT officials. "All of us have to pay revenue The government needs revenue to run the country, to take welfare programmes to the people," Muhith said.

The burden of VAT would be low on stages of value addition if a firm keeps records of its transaction properly, he said, adding that the government will provide electronic cash registers to help businesses in record-keeping.

Commerce Minister Tofail Ahmed said paying tax is a matter of pride and the citizens need to be

more enthusiastic about the exercise.

"VAT is not a donation — it is needed for the country's development," said MA Mannan, state minister for finance and planning.

He said it is a crime not to deposit the VAT to the state coffer after collecting the sums from customers.

NBR Chairman Md Nojibur Rahman reiterated the same.

He said the NBR is becoming business, people and service oriented by the day.

Md Shafiul Islam Mohiuddin, senior vice-president of the Federation of Bangladesh Chambers of Commerce and Industry; Md Rezaul Hasan, NBR member of customs and VAT administration; and Sultan Md Iqbal, NBR member of VAT implementation and IT, also spoke.