The National Board of Revenue (NBR) has decided to revise the VAT on hotels and restaurants to the previous level. NBR Member (VAT Policy) Mohammad Belal Hossain Chowdhury disclosed the decision on Thursday. The NBR will issue a notification in this  regard today. Ailing VAT collection: NBR wants answers from field level offices On January 9, the government had issued an order increasing a 15 percent VAT from the previous 5 percent in the sector. But the decision sparked widespread criticisms in the country. Bangladesh Restaurant Owners Association announced to form nationwide human chains on Thursday demanding reduction in Value Added Tax (VAT).

The price of liquefied petroleum gas (LPG) has been slightly raised following a change in the structure of the value-added tax (VAT) by the National Board of Revenue (NBR), according to the Bangladesh Energy Regulatory Commission (BERC). In a press release, the BERC announced that the price of LPG per kg has been set at Tk 121.56, up from Tk 121.19, showing an increase of Tk 0.37. As a result, the price of a 12 kg LPG cylinder will now be Tk 1,459, an increase of Tk 4, effective from January 14 (Tuesday). Prices for other sizes of LPG cylinders—ranging from 5.5 kg to 45 kg—will also rise accordingly, the BERC added. LPG exempted from VAT at production stage Besides, the price of “auto gas” (LPG used for motor vehicles) has been adjusted to Tk 67.27 per litre, up from Tk 66.78 (including VAT). However, the price of LPG marketed by the state-owned LP Gas Company will remain unchanged, as it is locally produced and holds a market share of less than 5 percent. LPG witnessed the highest price at Tk 1,498 (per 12 kg cylinder) in the local market in February last year.

The Consumers Association of Bangladesh (CAB) has urged the government to withdraw its recent decision to increase VAT and supplementary duties on over 100 essential goods and services, citing its potential to exacerbate inflation and intensify public suffering. Following recommendations from the International Monetary Fund (IMF), the National Board of Revenue (NBR) issued a notification imposing higher VAT and supplementary duties on items such as mobile and internet services, medicines, LPG, fruits, biscuits, detergents, soaps, tomato ketchup, kitchen towels, raw materials for rod production and other products, it said in a statement on Sunday. CAB Chattogram division leaders expressed concern that the decision would worsen the struggles of lower- and middle-income families already reeling from high inflation and soaring costs of essentials. The statement said food inflation in 2024 remained consistently high, peaking near 14% in November and around 13% in December. Govt's VAT, SD hike on 100+ products suicidal: DCCI Prices of non-food essentials also rose sharply, making it increasingly difficult for families to manage people’s expenses, it added. The recent VAT hikes will only fuel inflation further, creating an environment ripe for unscrupulous businesses to raise prices indiscriminately, the CAB leaders said. CAB leaders said that previous initiatives such as withdrawing VAT and import duties on 29 items, failed to benefit consumers due to the absence of monitoring, as corporate groups and importers pocketed the savings. They also criticised the decision to raise VAT on life-saving medicines, warning of dire consequences for families already burdened with rising medical costs. CAB urged the government to focus on broadening the VAT base, simplifying tax procedures, and preventing tax evasion. They also called for increased transparency and accountability in the NBR. Speakers at CAB event in Chattogram call for social resistance against dishonest traders Instead of imposing indirect taxes that disproportionately affect low-income groups, the government should emphasise direct taxation to ensure equitable revenue collection, the statement added. CAB leaders demanded the immediate withdrawal of the VAT and supplementary duty hike or at least its suspension until after Ramadan to mitigate public suffering.

The Dhaka Chamber of Commerce & Industry (DCCI) has raised serious concerns over proposed hikes in industrial gas prices and VAT, warning they could disrupt business, deter investment and undermine export competitiveness. Petrobangla recently submitted a proposal to the Bangladesh Energy Regulatory Commission (BERC) to more than double the per-unit price of gas for industrial and captive consumers—from Tk 30 and Tk 31.50 to Tk 75.72. The move aims to alleviate the government’s subsidy burden on gas production costs. Simultaneously, the National Board of Revenue (NBR) has raised income tax for motorcycle, refrigerator, air-conditioner, and compressor manufacturers from 10% to 20%, reversing a prior commitment to maintain reduced rates until 2032. In a statement, the DCCI highlighted that such measures, if implemented, would significantly increase production costs, placing inflationary pressure on both industries and consumers. This, the DCCI cautioned, could deter local and foreign investment, jeopardise Bangladesh’s competitive standing in the global market, and hinder the establishment of new industries. “The proposal to increase gas prices without ensuring uninterrupted supply presents a formidable challenge for businesses,” the DCCI said. “The cost of doing business will skyrocket, impacting both domestic and export-oriented industries. This would not only reduce profitability but also erode Bangladesh’s competitiveness in international markets.” Read: Private sector facing various challenges: DCCI The chamber said that the negative implications of inconsistent policies. The abrupt withdrawal of promised tax incentives, it argued, could tarnish Bangladesh’s reputation as an investment-friendly destination. “Such a reversal sends a detrimental message to both local and foreign investors, undermining confidence and casting doubt on policy reliability,” the statement added. A Call for Collaboration The DCCI urged the government, BERC, and Petrobangla to reconsider the proposed gas price hike. It also called for a review of the VAT and tax rate increases, suggesting that these measures could exacerbate inflationary pressures and operational costs for businesses at a time of global economic uncertainty. “To foster sustainable economic growth, it is imperative to maintain a stable, business-friendly environment,” the DCCI noted. “This requires long-term policy commitments, tax benefits, and active collaboration between the government, private sector, and other stakeholders.” Broader Implications The proposed tax hike on manufacturing industries such as motorcycles, refrigerators, and air-conditioners comes at a time when businesses are already grappling with an unstable economic climate. The DCCI warned that these measures could dampen local industrial activity, reduce foreign investment, and ultimately curtail economic recovery. Read more: Businesses agree with central bank's steps against bank robbers: DCCI With Bangladesh striving to recover amid global economic challenges, the DCCI reiterated the need for “cost-effective policies that ensure continuity and stability.” It argued that policy reversals and steep cost increases could undermine the country’s efforts to attract investors and sustain economic momentum.

The decision to raise VAT and taxes on various products has been taken to boost government revenue rather than to meet International Monetary Fund (IMF) conditions, Finance Adviser Dr Salehuddin Ahmed said on Thursday. Speaking to journalists after a meeting of Advisers Council Committee on Government Purchase at the Secretariat, the adviser said the adjustments were necessary to fill revenue gaps created by significant tax exemptions on certain goods. Salehuddin Ahmed said that the hike in VAT on 43 items would not affect the prices of essential commodities or burden ordinary citizens. He said that higher taxes have been imposed on luxury items, such as three-star and higher-rated hotels, while sparing establishments of standard quality. "The objective is to ensure a balanced revenue collection system that does not inconvenience the general population," he said. IMF again eases foreign exchange reserve target for Bangladesh The adviser, however, expressed optimism about economic stability in the coming year, adding that banks would receive sufficient support to maintain liquidity. "We aim to allocate increased budgetary resources to education and health, strengthening these vital sectors," he said. The proposal, which has been sent for presidential approval, will be implemented through an ordinance once authorised. While the adjustments target luxury goods, concerns persist regarding their potential impact on the broader economy.

The National Board of Revenue (NBR) has decided to launch a door-to-door campaign aimed at improving Value Added Tax (VAT) collection, as the revenue inflow from this sector looks to be “unsatisfactory”. According to data provided by the NBR, VAT collection up until October stood at Tk 41,192 crore, falling short of the target of Tk 51,904 crore. While briefing reporters recently, NBR Chairman Md Abdur Rahman Khan revealed that VAT collection reached Tk 45,831 crore by November and he was not happy with that. As part of its efforts, the Awami League government has set an ambitious VAT collection target of Tk 1,59,100 crore for the 2024-25 fiscal year. BB Governor acknowledges failures, achievements in financial sector According to NBR high officials, the NBR chief has already directed the field-level officials to work utmost sincerity and integrity to improve the VAT collection, which is now the biggest source of revenue collection for the country. The NBR chairman urged businesspeople who have not paid their pending VAT or registered for VAT to come forward and settle their dues promptly, emphasising the importance of taking quick action to avoid further complications. “We are going to start a door-to-door campaign,” he said, directing the field-level officials to take necessary preparations for the campaign. The NBR has decided to install Electronic Fiscal Devices (EFDs) across the country, including Dhaka, Chattogram, and other major cities, in an effort to prevent VAT evasion. EFDs are an improved version of the Electronic Cash Register (ECR) imported by the NBR. When used in business, VAT payments are automatically transferred to the NBR's main server, eliminating the possibility of hiding sales data. DSEX index gains 30.24 points in early trading This system ensures that daily transaction information is directly sent to the NBR server, which helps reduce fraud, according to NBR sources. To enhance revenue collection in various retail and wholesale businesses, the state-of-the-art electronic fiscal device system was introduced during the 2020-21 fiscal year. The goal was to track transactions and ensure accurate VAT collection from 25 different business types. The government is currently in the process of outsourcing the installation of these devices and ensuring the programme's continued operation. Officials from the NBR's VAT department said that substantial amounts of VAT are evaded at the retail and wholesale levels. They believe that bringing all retail and wholesale businesses under the machine system will boost revenue generation. In 2008, the NBR made e-cash registers mandatory for 11 business types, including hotels, restaurants, confectioneries, jewellers, beauty salons, wholesalers, and large retail stores. However, the results of that decision did not meet expectations. Many businesses reportedly continued to evade VAT by not using the e-cash registers in collusion with field officials of the revenue authority.

National Board of Revenue (NBR) chairman Md Abdur Rahman Khan on Monday said the government would try to introduce single rate VAT system in the country to reduce the leakage in revenue collection. Speaking at a press briefing marking VAT Day 2024, he emphasized the importance of expanding the VAT net and rationalizing tax exemptions to address the country’s economic challenges. “A single rate VAT system will not only reduce leakages but also make administration much easier. We are definitely working towards that goal,” Khan said during the event at the NBR conference room. This year’s VAT Day is themed, “We all will pay VAT and contribute to development.” The NBR chief highlighted plans to gradually phase out VAT exemptions while consulting stakeholders. “It does not mean that this has to be done right now. We will do that after consultation with the stakeholders,” he said. NBR plans online tax reforms to simplify process for taxpayers Khan expressed concern over the low number of registered VAT payers—currently just over 500,000—despite a significant number of eligible businesses operating outside the system. “The VAT net is still very narrow, leaving enormous room for expansion. We need to bring non-compliant businesses into the fold and expand the tax base urgently,” he said. The NBR has committed to intensifying supervision and targeting non-VAT-paying businesses. “Expanding the VAT net is crucial to bridging the revenue collection gap, especially as we face a shortfall in the first five months of the fiscal year,” he explained. The NBR chairman acknowledged the ongoing economic crisis and emphasized the importance of strengthening revenue collection to support recovery. “If we want to recover from the economic crisis and move forward, there is no alternative to increasing tax revenues,” he said, urging VAT officials to work with honesty and diligence. He also pointed to the impact of widespread tax waivers on revenue collection in recent months. “While tax waivers were introduced to benefit the masses, they have significantly affected revenue. We must reduce tax waivers and rationalize exemptions as the economy improves.” The NBR chairman outlined the agency’s efforts to create a robust and fully online VAT system. “We have automated VAT registration, filing, and payment systems and are now focusing on introducing an e-invoice system to eliminate flaws and improve efficiency,” he said. The shift from paper-based processes to digital systems aims to simplify procedures for stakeholders, encouraging broader participation. Additionally, VAT rates on essential goods like sugar, eggs, potatoes, and edible oil have been reduced in response to current economic realities, while excise duties on Hajj passenger tickets have been waived. He reiterated the NBR’s commitment to fostering a business-friendly environment and strengthening the country’s tax culture. “By involving consumers, traders, and industrial owners, we aim to build a Bangladesh of dreams—one that is inclusive and free of discrimination.” “The success of the VAT system depends on the widespread participation of stakeholders. It is hoped that all these promotional activities will be quite helpful in building a tax culture in the country, which will contribute to increasing VAT collection in the future. The desired development will be achieved in its continuation. We will become a happy, beautiful and prosperous country,” said the NBR chairman.

The import-level value-added tax (VAT) on edible oil has been reduced from 10 percent to 5 percent to maintain a steady supply in the market. The National Board of Revenue (NBR) issued a notification in this regard on Tuesday. Earlier, the NBR had issued exemption notifications to boost the supply of rice, potatoes, onions, eggs, edible oil and sugar in the market. Read: Govt to procure 55,000 MT soybean oil for OMS On October 17, 2024, to keep oil prices within the purchasing power of the general public, a 15 percent tax exemption was allowed at the local production level, while a 5 percent VAT was imposed at the local business level on the supply of refined and unrefined soybean and palm oil. As a result of this exemption, only a 5 percent VAT is currently applicable at the import level. The NBR says that the removal of the said VAT will help maintain edible oil prices at a manageable level in the market, ensuring that consumers do not face increased costs. This exemption on edible oil will remain effective till December 15, 2024.

The National Board of Revenue (NBR) on Thursday issued a gazette notification exempting import duty on sugar and eggs, and import and local VAT on edible oil to increase supply and rein in the prices of these essential commodities. According to an NBR press release, the existing import duty on eggs has been reduced from 25 percent to 5 (five) percent – which will reduce the price of eggs by Tk 13.80 per dozen at the import stage. Govt slashes VAT on import of edible oil Due to the reduction of import duty, the supply of eggs in the market will increase and the price of eggs will be reduced at the consumer level, so it will be more affordable to general consumers, the NBR hopes. It also said that the costs of egg-using industries such as confectionery, bakery, egg-based food producing industry will be cut, returning “relief and balance” to the market. This facility will remain in force till December 15, 2024. In the case of supply of refined soyabean oil and refined palm oil, the NBR press release said that 15 (fifteen) percent VAT imposed at the local production level and 5 (five) percent at the local business level has been exempted and the import level VAT has been fixed at 10 (ten) percent instead of 15 (fifteen) percent for the import of crude soybean oil, crude palm oil, other including refined palm oil and refined soybean oil. Due to the reduction and withdrawal of value added tax at the import stage and at the local level, it will be possible to keep the price of this essential commodity at a tolerable level in the market despite the increase in the price of edible oil in the international market, the NBR said. This facility of edible oil will remain in force till December 15, 2024. On October 8, the existing regulatory duty on refined and unrefined sugar was reduced from 30 percent to 15 (fifteen) percent. The National Board of Revenue (NBR) has reduced the import duty on refined sugar from Tk 6,000 to Tk 4,500 per metric ton within a week to increase the supply of refined sugar in the market. Due to the significant reduction of import duty and regulatory duty on refined sugar, the supply of refined sugar will increase in the market by increasing the import of refined sugar and it will be possible to keep the price of sugar at a tolerable level, the NBR said.

The government on Thursday reduced the Value Added Tax (VAT) on import of soybean and palm oil to 10 percent from existing 15 percent. The National Board of Revenue (NBR) issued two separate notifications reducing VAT on imports, processing and trading of soybean and palm oil. Traders propose waiving duties on soybean, palm oil imports It also exempted VAT at production and trading of the highly import-based edible oil. As per the notifications, the reduced VAT will remain effective until December 15 of this year. PROGGA urges ban on sale of loose edible oil in unhealthy drums On October 9, the NBR reduced the regulatory duty on both refined and raw sugar imports from 30 percent to 15 percent aiming to make sugar prices more bearable for consumers.