Dhaka residents peeved at planned VAT on online shopping

Citizens of Dhaka are none too pleased at Finance Minister AMA Muhith’s proposal to levy 5 percent VAT on online shopping when it is just taking off in Bangladesh.

Staff Correspondentbdnews24.com
Published : 7 June 2018, 10:21 PM
Updated : 7 June 2018, 10:21 PM

Many are also frustrated that the income tax exemption threshold has not been raised in the proposed budget for 2018-19 fiscal year.

After Muhith presented the budget in parliament on Thursday, bdnews24.com spoke to a cross-section of people about what they made of his proposals.

Silvia Sultana, doctor, said she often goes to the internet for shopping as it is easy to shop online from home.

“Now things are going to change because prices will go up at the online shops,” she said.

Muhith has also proposed 5 percent VAT on ride-hailing services like Uber and Pathao.

Jannatul Ferdous Lucky, a student of Jagannath University, said, “Ultimately we’ll have to pay from our pocket if VAT is imposed on ride-sharing service and online shopping.”

She also said the 10 percent supplementary duty on cosmetics was ‘ridiculous’.

The ceiling of tax-free annual income has been kept unchanged at Tk 250,000, which Rashedul Islam thinks should be raised to Tk 500,000.

The resident of Mohammadpur argued that the government itself said per capita income has increased. “By that argument, the tax-fee income should double,” he said.

Solaiman Hossain, a resident of Mirpur, thinks there should be special allocation to ease traffic congestion in Dhaka.

Though duties and taxes have not changed much in the budget, the people are waiting to see how the budget effects the prices of essential commodities.

Rickshaw-van driver Golam Mawla has no idea what a national budget is, but says understands very well that the government should take steps to keep prices at tolerable levels.

Asiful Islam Sohel, proprietor of a fast food shop at Mohakhali, also thinks so.

Shirin Akter Shila, a student of City College, said, “Every family has its own budget for Eid. It will be a problem if prices rise before the Eid.”