- Bangladesh government increased VAT on 43 goods and services to address budget deficit concerns
- National Board of Revenue claims VAT hike will not affect inflation despite ongoing high rates
- Revenue board warns of potential budget deficit if revenue collection remains low
- Tax cuts on essential items to manage inflation have reduced revenue collection
- Businesses worry VAT increase will reduce sales and government revenue
- Economists criticize the timing of VAT hike as it aligns with ongoing high inflation rates
- VAT increase part of conditions set by IMF for a $4.7 billion loan program
- NBR aims to raise an additional Tk 12,000 crore in government revenues
- Economists argue VAT hike could reduce consumer spending and lower revenue earnings
- Government advised to focus on increasing direct taxation rather than relying on VAT hikes
- IMF recommends Bangladesh to rationalize tax exemptions and improve tax law compliance
- Bangladesh has one of the lowest tax-to-GDP ratios globally leading to reliance on borrowing
- New VAT rate of 15 percent to apply to various items including medicine and branded clothing
- Retail sector predicts decline in sales due to VAT increase affecting consumer spending habits
Source: thedailystar.net
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.
