Bangladesh to hike VAT on goods and services amid IMF pressure
Under pressure from the International Monetary Fund, or IMF, Bangladesh is imposing additional VAT and duties on a number of essential goods amid the ongoing high inflation and slowing economy, production and supply.
The hike will affect various items, including medicines, powdered milk, biscuits, fruit juices, soap, sweets, mobile phone calls, internet usage, dining at hotels and restaurants, air travel, cigarettes, and other tobacco products.
The National Board of Revenue (NBR) announced the decision mid-fiscal year as part of a 4.7 billion US dollar loan agreement with the IMF aimed at safeguarding the country’s foreign exchange reserves.
According to an NBR press release issued on Wednesday, a 15% VAT rate has been proposed for 43 categories of goods and services, up from their current rates of 5% and 7.5%.
Typically, tax adjustments require parliamentary approval. However, with no active parliament in session, the interim government plans to implement the changes through a presidential ordinance. Officials suggest the ordinance could be issued as early as next week.
.png "Advertisement")
