The impact of imposing the new VAT & SD Act 2012: a study on the challenges Chevron faced due to the change of VAT Law

Abstract

Chevron is an oil & gas based multinational company which is operating to process most of the gas production of Bangladesh. The company is operating as a profit center under the Asia South Business Unit. It is a renowned company for tax paying and it’s one of the largest foreign direct investment in Bangladesh. It is highly concerned about creating values, trust and maintain a high professional and operational excellence. Chevron also focuses on safety, operational excellence, environment and involved in various social and development activities. It is included in the Fortune 500 for 65 years and currently it is in the 11th position. It has upgraded 2 steps in the Fortune 500 list. Chevron Bangladesh has three fields in Bangladesh and all of them are situated in Sylhet. It has a corporate office in Dhaka. All the gas fields have a vision for expansion of unexplored blocks and to find and develop alternative source of energy. In Chevron Bangladesh I have worked in the Finance department. I was enrolled as an intern in the Tax and Treasury division. My major task was to assist in providing Tax and VAT certificates to the vendors. Along with that I have done some data entry tasks where I have assisted to update the vendor’s list of Chevrons Bangladesh. Moreover, I have also attended numerous knowledge sessions which was offered by the Finance department of Chevron. My research is basically on the current change of VAT Law. Previously VAT law 1991 was followed. The VAT and SD Act 2012 was imposed in July 2019. Basically, I have tried to cover both the law’s features, advantages and disadvantages. Also, I discussed contribution of VAT in government revenue and the context of introducing a new VAT law. My core findings are the challenges Chevron faced due to this change in VAT Law and what are the remedial actions Chevron took.