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Dhaka, Bangladesh (BBN) – Bangladesh has set a 15 percent Value-Added Tax (VAT) rate for the next three years.
The announcement on the VAT came while Finance Minister AMA Muhith delivering his 11th budget speech on Thursday.
“First of all, I would like to say that VAT will be applicable at a single and uniform rate. This rate will be 15 percent which will be unchanged over the next three years,” said Finance Minister Muhith.
“In order to successfully implement the Value Added Tax and Supplementary Duty Act, 2012, the business community had put forward some recommendations for protecting the legitimate interest of the small entrepreneurs,” the minister said.
On the basis of their recommendations I am proposing to raise the annual turnover from Tk 30 Lakh to Tk 36 Lakh. The firms with this annual turnover will be completely out of the scope of tax. This kind of benefit was not there in the 1991 VAT Act,” he said.
“Besides, according to the desire of the business community, I am proposing before this august Parliament to raise threshold for registration under VAT from Tk 80 Lakh to 1 crore 50 Lakh,” he added.
“In other words, businesses having a total yearly turnover up to Tk 1 crore 50 Lakh will be able to avail the opportunity to pay only 4 percent tax on their turnover.”
“This is a unique opportunity for the small entrepreneurs which is not available in other countries of the world. In addition, several changes have been incorporated in the new Act and Rules to simplify the VAT collection procedures according to the proposals of the business community,” the minister said.
BBN/SS/ANS