Bangladesh, Oct. 9 -- The absence of a definition of inputs in the VAT law has put at risk the target of revenue mobilisation from manufacturing companies, officials say.
Under the VAT law, manufacturers are entitled to get refund or adjust the VAT they pay at the time of purchasing or procuring inputs.
In the VAT law-1991 there were specific definitions of the inputs eligible for VAT refund.
However, the new VAT and Supplementary Duty Act 2012, implemented from July 1 last, has no definition of inputs.
Field-level VAT officials say manufacturing companies will be able to claim higher VAT rebates in the current fiscal year in the absence of any definition of inputs in the law. The large ones will be benefited more due to the omission.
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