Publish: 15:15, 22 Jan, 2025

NBR revises VAT rate across sectors

Online Desk
NBR revises VAT rate across sectors
Photo - Collected

The National Board of Revenue (NBR) has issued several notifications by re-fixing the rates of VAT, Supplementary Duty and Excise Duty on some goods and services, which were increased on January 9, aiming to strengthen the country's economic base.

The government had issued the "Value Added Tax and Supplementary Duty (Amendment) Ordinance, 2025" and "The Excises and Salt Act (Amendment) Ordinance, 2025" on January 9, 2025, reports UNB.

Later, considering the requests of various professional organizations, civil society and stakeholders, in the larger public interest, the National Board of Revenue has issued 4 new notifications on Wednesday reducing the existing VAT rate, VAT deduction rate at source and Supplementary Duty rate on some goods and services.

Medicines: In order to make medical services more accessible to all sections of the population, the increased VAT rate on the pharmaceutical industry at the business level has been completely withdrawn and the previous rate of 2.4% has been maintained.

With the withdrawal of the additional VAT imposed on medicines, the continuous development of the pharmaceutical industry will continue and the price of medicines will not increase at the general consumer level.

Mobile Phone and ISP Services: In order to continue the ongoing digitization activities of the country and to create a modern IT-savvy young generation and increase online-based activities, the increased supplementary duty on services provided through the use of mobile phone SIM/RIM cards and the newly imposed supplementary duty on ISP services have been completely withdrawn.

With the complete withdrawal of the increased/newly imposed supplementary duty on mobile phone and ISP services, the cost of consumers in these two sectors will not increase.

Restaurants: In order to facilitate the large population of the country to consume food in restaurants at affordable prices, the additional VAT imposed on all restaurants except three-star, four-star and five-star hotels has been completely withdrawn.

As a result of the complete withdrawal of the additional VAT, the general public will be able to consume food in these restaurants at the previous price.

Motor vehicle garages and workshops: In the public interest, the increased VAT rate has been completely withdrawn in the case of motor vehicle garage and workshop services.

As a result of the complete withdrawal of the additional VAT, the price of the related service will not increase.

Others: In the same consideration, the additional VAT imposed on the marketing of other clothes except for own-brand ready-made clothes has been completely withdrawn.

In addition, the VAT rate on services has been reduced from 15 percent to 10 percent in the case of non-AC hotels, dessert shops, and marketing of own-brand ready-made clothes.

A press release from NBR said that that in the larger interest of the people of the country, in the last few months, the National Board of Revenue has provided massive tax exemptions on import duty, regulatory duty, VAT, advance income tax and advance tax on edible oil, sugar, potatoes, eggs, onions, rice, dates and pesticides.

In order to ensure easy availability of books for students at all levels of Bangladesh, to establish a modern and information technology-based education system and to improve the quality of the education system, VAT exemption has been provided for e-book services at the local supply and import level.

VAT exemption has been provided on the fast, safe and environment-friendly metro rail service for its important role in reducing traffic congestion. In addition, the National Board of Revenue has completely withdrawn the excise duty on Hajj tickets in order to reduce the expenses of Hajj passengers.

Bd-Pratidin English/ AM

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