Grocery shops, beauty salons among 16 sectors eyed for fixed VAT

The government plans to bring 16 business categories under a fixed VAT system in FY27, the finance minister tells parliament

The government plans to bring 16 retail business sectors, including grocery stores, beauty parlours, and restaurants, under a specific value-added tax (VAT) framework from the 2026-27 fiscal year.

Finance Minister Amir Khosru Mahmud Chowdhury informed parliament of the plan on Wednesday in response to a query from Salina Sultana, a lawmaker from a reserved seat for women.

The question-and-answer session was tabled during a parliamentary sitting presided over by Speaker Hafiz Uddin Ahmad.

Replying to Sultana’s inquiry on whether the state intends to bring new establishments or sources under the consumer tax network, the minister confirmed the expansion plans.

According to him, the 16 sectors earmarked for specific VAT include grocery shops, readymade garment and clothing retailers, confectioneries, cosmetics shops, plastic and ceramic household goods stores, shoe shops, hardware retailers, decorators, and sellers of mobile phones, air conditioners, refrigerators, ovens and other electronics.

Also on the list are paint and hardware shops, sanitary and fittings stores, tile shops, corrugated iron sheet shops, rod and cement retailers, furniture shops, beauty parlours, sweet shops and restaurants.