FEPD Circular Letter No. 03: Imposition of 15% VAT from FY-2010-2011 on fees collected from the parties for issuing and renewing import, export and indenting certificates and submit that collected amount to government treasury

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka-1000. www.bb.org.bd

Circular Letter No.-03 Date: 24 Baisakh 1424 April 20, 2017

To: All Approved Dealers Banks engaged in foreign exchange transactions Head Office / Principal Office.

Dear Sirs,

Subject: Deduction of VAT at source at the rate of 15% and deposit into the government treasury on fees collected from customers against the issuance and renewal of Import, Export, and Indenting Registration Certificates from the fiscal year 2010-2011.

Reference is drawn to your attention to the Memorandum No: 26.03.0000.004.02.004.16/113 (Enclosed) sent from the Office of the Chief Controller of Imports and Exports dated 03/04/2017 on the subject cited above, and Circular Letter No. FEPD(Import Policy)123/2015-17, dated 02/09/2015 issued by this department.

2. In light of the recent cancellation by the Honorable High Court of the interim order previously issued staying the VAT collection program in Writ Petition No. 5354/2016, you are hereby informed that the VAT collection program will be carried out regularly in accordance with the instructions issued by this department via Circular Letter No.-FEPD(Import Policy)123/2015-17 dated 2/09/2015.

Please kindly inform all concerned parties regarding the subject matter of this circular letter.

Yours faithfully,

(Signature) (Md. Abdul Mannan) Deputy General Manager Phone: 9530399

Enclosure: As stated.

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Government of the People's Republic of Bangladesh Office of the Chief Controller of Imports and Exports 111-113, Motijheel Commercial Area Dhaka-1000. www.ccie.gov.bd

No.-26.03.0000.004.02.004.16/113 Date: 20 Chaitra 1423 03 April 2017

Notification

Subject: Deduction of VAT at source at the rate of 15% and payment of deposit into the government treasury on fees collected from customers against the issuance and renewal of Import, Export, and Indenting Registration Certificates from the fiscal year 2010-11.

In this regard, it is informed that, in light of the letter No. 26.03.0000.007.03.001.14/668 dated 18/08/2015 from the VAT Act and Rules Branch of the National Board of Revenue, the Office of the Chief Controller of Imports and Exports, through letter No. 26.03.0000.007.03.001.14/668 dated 27 August 2015, had issued instructions to deduct VAT at source at the rate of 15% and deposit into the government treasury on fees collected from customers against the issuance and renewal of Import, Export, and Indenting Registration Certificates from the fiscal year 2010-11.

2. In this matter, when Writ Petition No. 5354/2016 was filed before the Honorable High Court Division, the Court, through an interim order, stayed the applicability of Rule 16 and Sub-rule (1) of the VAT Act 1991 for three (3) months. Consequently, this office, through letter No. 26.03.0000.004.02.004.16/27 dated 09 June 2016, issued instructions to stay the VAT collection program.

3. Writ Petition No. 5354/2016 has been dismissed by the Honorable High Court Division. Along with this, the interim order previously issued by the Court has been cancelled.

4. In this situation, the applicable VAT collection program will be carried out in accordance with the instructions of this office's previous letter No. 26.03.0000.007.03.001.14/668 dated 27 August 2015.

(Signature) 3.4.2017 (Afroze Khan) Chief Controller Imports and Exports, Dhaka. Phone- 9555946, Fax- 9580257 E-mail- controller.chief@ccie.gov.bd

Distribution for kind information and necessary action (not in order of seniority):

1. Chairman, National Board of Revenue, Segunbagicha, Dhaka (Ref: Additional Member, VAT Policy).
2. Secretary, Ministry of Commerce, Bangladesh Secretariat, Dhaka.
3. Additional Secretary, Ministry of Commerce, Bangladesh Secretariat, Dhaka.
4. General Manager, Foreign Exchange Policy Department, Bangladesh Bank, Head Office, Motijheel, Dhaka (To issue instructions to Chairmen/Managing Directors of all scheduled banks).
5. Commissioner, Customs, Excise and VAT Commissionerate, Dhaka (South), Dhaka.
6. Office In-charge, all Regional Offices of Imports and Exports.
7. Chairman/Managing Director, all scheduled banks (To officially inform all concerned A/AD banks).
8. President, FBCCI, Federation Bhaban, Motijheel, Dhaka (To inform all chambers/associations).
9. Website copy.