- NBR plans to expand income tax coverage following a VAT increase
- Interim government raised VAT on 43 products and services to 15%
- Taxes on airfares, cigarettes, medicines, detergents, and soaps will increase
- No presidential ordinance issued yet for these tax changes
- Businesses with annual turnover over Tk50 lakh to be included in 15% VAT bracket
- NBR addresses media reports, clarifying no increase in VAT for essential goods
- Essential commodities like rice, potatoes, onions, sugar, eggs, dates, edible oil, and pesticides had tax waivers to stabilize market prices
- Revenue collection dropped significantly due to tax waivers on essential items
- NBR warns of potential massive budget deficit if revenue isn’t increased from non-essential sectors
- Expansion of VAT coverage is part of mid-term fiscal measures for 2024-25
Source: dhakatribune.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
