DHAKA, June 1, 2017 (BSS) - Finance Minister AMA Muhith today proposed keeping uniform VAT (Value Added Tax) rate at 15 percent over the next three years which would be in effect from July 1.
"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," he said.
The minister added the revenue administration is fully prepared to implement the Value Added Tax and Supplementary Duty Act, 2012 from 1st of July, 2017.
He made the proposal while announcing the national budget for 2017-'18 fiscal in the Jatiya Sangsad this afternoon with Speaker Shirin Sharmin Chaudhury in the chair.
Muhith said he proposed to raise the annual turnover from Taka 30 lakh to Taka 36 lakh on the basis of the recommendations from business community.
"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 added.
He also proposed to raise threshold for registration under VAT from Tk 80 lakh to 1.5 crore.
The minister also proposed to provide VAT exemptions on 536 primary food items such as rice, lentils, fish, meat, vegetables, sugar, honey, puffed rice, maize, wheat, liquid milk, barley, salt same as before.
"In addition, I am proposing to provide VAT exemption to 93 items of life saving drugs. Public transport services, public health and medical services, education and training services will also enjoy VAT exemption," he said.
He also proposed VAT exemption for 404 items of the agriculture; livestock and fisheries sector same as before.
"Furthermore, non commercial activities of charitable and cultural organizations will also enjoy VAT exemption facility," he said.
The minister said as a result of these exemptions, the market price of the daily necessary commodities is expected to go down and is not supposed to increase under any circumstances.
Source: Bangladesh Sangbad Sangstha (BSS)