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Government Reverses VAT Decision: Plans to Reduce Costs on Essential Items and Services

  • Interim government reverses decision to add VAT on 8 items and services
  • Supplementary duty on plane tickets for Hajj flights to be withdrawn
  • Items with VAT withdrawn or reduced include medicine, restaurants, hotels, automobile workshops, mobile phone services, internet, sweetmeat shops, and clothing
  • Statutory Regulatory Order to be issued soon by NBR
  • VAT on medicine reduced from 3% to 2.4%
  • VAT on mobile internet, talk time, and ISPs to be reduced from 23% to 20%
  • 15% VAT on automobile workshops scrapped
  • 15% VAT on restaurants reduced to 5%
  • Import taxes on e-books scrapped
  • VAT on non-AC hotels reduced from 15% to 10%
  • VAT on clothing and sweets reduced to 10%
  • Supplementary duty on plane tickets for overseas trips to be withdrawn

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.

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