The National Board of Revenue ( NBR ) has stated that as per the conditions of the International Monetary Fund (IMF), the products and services on which VAT, supplementary duty, and excise duty are being increased do not include essential goods.
This information was provided by NBR’s Public Relations Officer Al Amin Sheikh in a press release on Saturday (January 4).
The Public Relations Officer of NBR said, “The goods and services on which VAT, supplementary duty, and excise duty are being increased do not include essential goods. Therefore, the prices of general consumer goods will not rise, and it will not affect inflation.”
He also added, “In the public interest, significant exemptions have been given in the tariff rates of essential goods. Alongside this, in order to increase domestic revenue collection, implement SDGs, and achieve self-reliance as a nation, various initiatives have been taken by the NBR to expand the VAT base and rationalize the rates.”
The press release stated that some news published in the media regarding VAT, income tax, and duties have come to the notice of the National Board of Revenue.
In the last four months, to increase the supply of essential goods in the market and stabilize prices, duties, VAT, and income tax have been exempted in the public interest at the import, local, and business levels on eight items, including rice, potatoes, onions, sugar, eggs, dates, edible oil, and pesticides.
Due to this, revenue collection has dropped significantly. If revenue is not increased from other sectors, a huge budget deficit will arise. Therefore, VAT coverage is being expanded. This special measure has been taken by the NBR during the middle of the 2024-25 fiscal year.
NBR sources say that under IMF pressure, the government is going to bring some amendments to the VAT and supplementary duty law. As a result, additional VAT and duties may be imposed on around fifty products and services, including medicines, powdered milk, cigarettes, and airline tickets. Therefore, the prices of these products and services may increase once before the budget.
It has also been learned that some amendments have been made to the VAT and Supplementary Duty Act. Along with these amendments, the draft of the Value Added Tax and Supplementary Duty (Amendment) Ordinance 2025 has received policy approval in the advisory council meeting on Wednesday (January 1), subject to vetting by the Legislative and Parliamentary Affairs Division.
Dhaka/tareq
