The interim government has increased the value added tax (VAT) and supplementary duty in the middle of the 2024-25 fiscal year, resulting in a rise in the cost of living.
National Board of Revenue on Thursday has issued two ordinances in this regard, they are value added tax and supplementary duty (Amendment) ordinance 2025 and the excise and salt (Amendment) ordinance 2025.
This ordinance will increase the cost of various goods and services including mobile phone services, cloths, restaurant foods, sweets, medicines, LPG, fruit juices, drinks, biscuits, spectacle frames and cigarettes, etc.
Until now, a supplementary duty of 20 percent was imposed on the use of mobile phone services- internet and talk time. This has now been increased to 23 percent. As a result, the cost of talking on mobile phones and using the internet will also increase.
VAT on bills of brand shops and ready-made garments outlets has been increased from 7.5 percent to 15 percent. In addition, VAT on all types of restaurants has been increased from 5 percent to 15 percent.
The list of tax increases also includes tissues, cigarettes, nuts, mangoes, oranges, grapes, apples and pears, fruit juices, any type of fresh fruit, paints, detergents, dyes, potato flakes, plastic and metal frames of glasses, reading glasses, sunglasses, electrical transformers and the oil used in them, electricity poles, CR coils, GI wires, etc. Apart from this, travel tax has also been increased.
Earlier, on January 1, the NBR’s proposal to increase VAT and supplementary duty was passed in a meeting of the advisory council of the current interim government. It has been issued in the form of an ordinance after the approval of the Chief Adviser and the President, subject to the opinion of the Law Ministry.
The government has made the decision to increase VAT and supplementary duty through an ordinance in the absence of the National Parliament. It is learned that this decision to increase customs duties on more than a hundred goods and services has been taken as a condition for a loan from the International Monetary Fund (IMF).
Bd-Pratidin English/ Afsar Munna
