Govt reduces VAT on biscuits to 7.5%

The government has reduced the recently increased Value Added Tax (VAT) on hand-made and machine-made biscuits from 15 percent to 7.5 percent.

A gazette notification signed by Md Abdur Rahman Khan, Chairman of the National Board of Revenue, was issued on Wednesday (February 19).

In the middle of the current 2024-25 fiscal year, the government raised VAT and Supplementary Duty on more than a hundred goods and services, including bakery items such as biscuits and cakes.

The VAT on these products was increased from 5 percent to 15 percent. The imposition of VAT on biscuits, a staple food item, sparked widespread criticism. In response, the government has now reduced the VAT on biscuits to 7.5 percent.