Household bills could rise in the new year. Under pressure from the International Monetary Fund, or IMF, Bangladesh is imposing additional VAT and duties on a number of essential goods.
This list includes - life-saving medicines, LP gas, powdered milk, biscuits, pickles, tomato ketchup/sauce, cigarettes, juice, tissue paper, fruits, soap, detergent powder, sweets, slippers (sandals), and air tickets. As a result, the daily living costs of the middle and upper middle class will increase slightly.
According to NBR, initiatives have been taken to increase the VAT rate for purchasing clothing as well as restaurants. Currently, there is a 7.5 percent VAT on ready-made clothing outlet bills. It has been decided to increase it to 15 percent. If that happens, the cost of buying clothing will also increase. Apart from this, consumers may have to pay more when buying sweets. Because initiatives are being taken to increase the VAT rate from 7.5 percent to 15 percent for buying sweets from sweet shops.
In addition, Air-conditioned restaurants currently pay 5 percent VAT on food bills, which will now increase to 15 percent under the proposal.
A press release from the NBR on Wednesday said that initially, 15 percent VAT had been proposed on 43 types of goods and services. These goods and services currently have VAT rates of 5 percent and 7.5 percent, respectively.
The proposal to increase VAT was raised at the advisory council meeting held at the Chief Advisor’s Office on the day and an official of the NBR's VAT confirmed that it has been approved in principle.
NBR-related sources said that in the middle of the current 2024-25 fiscal year, initiatives have been taken to increase revenue by suddenly increasing various types of taxes including VAT, supplementary duty. Initially, 15 percent VAT will be imposed on 43 types of goods and services. The proposal to increase VAT was raised at the Advisory Council meeting held at the Chief Advisor's office yesterday.
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