United News of Bangladesh

The government has exempted production-and-business-level value-added tax on some daily necessities in the public interest during the Ramadan. In order to strengthen Bangladesh's own financial base, the government has issued the "Value Added Tax and Supplementary Duty (Amendment) Ordinance, 2025" and "The Excises and Salt (Amendment) Ordinance, 2025" on January 9, 2025. For the same purpose, the National Board of Revenue (NBR) has issued several notifications re-fixing the rates of VAT, supplementary duty and excise duty on some goods and services. Later, in view of the requests of various professional organisations, civil society, stakeholders and the demand to keep the daily necessities market within the purchasing limits of the general public during the month of Ramadan, the government has taken the matter seriously in the larger public interest. In the interest of the general public, including price control, maintaining normal supply of essential commodities, and the larger interest of the general public, the government has issued a new notification on March 2, 2025, granting VAT exemption as follows: In order to increase the use of rapeseed oil, colza seed oil, canola oil as an alternative to soybean oil, VAT exemption has been granted at the production stage of rapeseed oil, colza seed oil, canola oil and at the trading stage of Sunflower Seed Oil (Refined), rapeseed oil, colza seed oil, canola oil, mustard oil and rice bran oil produced in the country. Gold smuggling surges exploiting baggage rules; NBR plans to tighten regulations Dried leguminous vegetables produced in the country, whether peeled or split or not (commonly known as pulses or lentil-like food grains); All types of powdered chili, coriander, ginger, turmeric or a mixture of these spices produced in the country; Domestically produced flour, semolina and semolina; domestically produced biscuits; all types of salt and herbicides used in agriculture have been exempted from VAT at the business level. It is pertinent to mention that in the larger interest of the general public of the country, the National Board of Revenue has provided a large-scale tax exemption on import duty, regulatory duty, VAT, advance income tax and advance tax on edible oil, sugar, potatoes, eggs, onions, rice, dates and pesticides in the last few months. In order to ensure easy availability of books for students at all levels of Bangladesh, to establish a modern and information technology-based education system and to improve the quality of the education system, VAT exemption has been provided for e-book services at the local supply and import level. VAT exemption has been provided on fast, safe and environment-friendly metro rail services as they play an important role in reducing traffic congestion. In addition, in order to reduce the expenses of Hajj pilgrims, the National Board of Revenue has completely withdrawn the excise duty levied on Hajj tickets.

The National Board of Revenue (NBR) has clarified that superstores cannot charge additional money from consumers if they sell goods at the Maximum Retail Price (MRP), as the Value Added Tax (VAT) is already included in the price. In an instruction letter issued recently, the NBR said superstores  paying VAT at the standard 15 percent rate are eligible for an input tax rebate, provided they comply with other legal provisions. However, those paying VAT at the reduced 7.5 percent rate are not entitled to any rebate. The directive aims to regulate product prices, protect consumer rights, facilitate trade, and implement a structured VAT system, the NBR said. The NBR defines a super-shop as an independent and complete shop, whether air-conditioned or not, regardless of its size, where fresh, germ-free, and preservative-free fish, meat, rice, lentils, vegetables, fruits, and other household and decorative products are sold using modern scientific technology. NBR issues instructions on tax audit case disposal The Value Added Tax and Supplementary Duty (Amendment) Ordinance, 2025, has raised the VAT rate for businesses from 5 percent to 7.5 percent, effective from January 9, 2025. Consequently, superstores  are now subject to a 7.5 percent VAT rate. Under the Value Added Tax and Supplementary Duty Act, 2012, registered businesses can opt to pay a 15 percent VAT instead of the reduced rate or specific tax outlined in the Third Schedule. If a superstore chooses the 15 percent VAT rate, it can claim an input tax rebate without needing to submit an input-output coefficient declaration, provided all other legal conditions are met.