Dhaka, Bangladesh (BBN)– The uniform Value Added Tax (VAT) will remain unchanged at 15 per cent on goods and services in line with the new VAT and Supplementary Duty Act-2012 to be effective from July 1, Finance Minister AMA Muhith said on Saturday.
“The VAT exempted annual turnover limit will be increased, but we will keep VAT rate at 15 percent,” the finance minister told reporters at his secretariat office in the capital Dhaka.
The minister, however, claimed that the 15 per cent uniform VAT will not affect the price of essentials as many necessary items will be kept out of the purview of it.
“The new ceiling is likely to be fixed within a day or two,” the minister hinted.
He said the limit of maximum 3.0 per cent VAT on up to BDT 8.0 million annual turnovers will also be raised. “It means we are giving special exemptions to small businesses.”
The minister also said the budget will be announced on June 1 and it will be prioritized in various sectors, including human resources.