Muhith says uniform, reduced VAT rate will be finalised later in May

A new uniform and reduced VAT rate will be finalised later this month, the finance minister has said. 

Senior Correspondentbdnews24.com
Published : 21 May 2017, 03:37 PM
Updated : 21 May 2017, 03:37 PM

AMA Muhith disclosed the move to the media after a pre-budget discussion with the Dhaka Chamber of Commerce and Industry (DCCI) and Insurance Association at the Secretariat on Sunday.

Asked whether he would stick to his decision to cut VAT rate, he said, “Yes, yes, of course. It will be finalised on the 25th or 26th (of May).”

He said a public notice would be issued after the new VAT rate is finalised.

He said the uniform VAT rate would be effective from July 1. “Since there are so many objections, it will be reduced,” he said.  

Muhith also said Prime Minister Sheikh Hasina had not given any instruction on VAT when he had informed her about the businesses’ objection to enforcing the law to collect 15 percent VAT.

He said the 2012 law was being phased in. “Why should we stop this following this sudden threat?” he asked.

The government wanted to implement the Value Added Tax and Supplementary Duty Act of 2012 from July 1 last year but shelved the plan following intense protests by the trade bodies. The rates of package VAT were raised instead.

Since then, the finance minister has been saying the law will be implemented from July 1 this year. But the businesses threatened to demonstrate against the plan again.

A heated argument took place when a businessman made the threats during a joint advisory meeting between the National Board of Revenue (NBR) and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) last month.