VAT up for large apartments, down for small, medium flats

Value added tax (VAT) for small and medium-sized residential apartments is being reduced, while being raised for large flats.

Finance Minister Abul Maal Abdul Muhith proposed the VAT revision for apartments in his budget speech for FY 2015-16 in Parliament on Thursday.

He proposed 1.5 percent VAT for flats of up to 1,100 sq ft, 2.25 percent for apartments of 1,101 to 1,600 sq ft and 4.5 percent for those over 1,600 sq ft.

The present rate of VAT on flats is 3 percent irrespective of their sizes.