Decision on VAT after discussion in JS: Muhith

Finance Minister AMA Muhith on Tuesday said the decision regarding changes in the new value added tax (VAT) law implementation will be announced on June 28 after discussions in the Jatiya Sangsad (JS).

“Discussions on implementation of the new VAT law are underway in the national parliament. We will announce the decision on new VAT law implementation when the proposed budget will be passed,” he told journalists at a function at the Finance Ministry in the city.

Bangladesh Infrastructure Finance Fund Limited (BIFFL) handed over a total of Taka 64 crore dividend for 2015-16 financial year (FY16) in the function.

The finance minister said there is no scope to disclose anything regarding the budget when the budget session is going on in parliament.

Regarding the proposed excise duty on bank deposits, he said, the decision will be changed when the budget will be passed in the Jatiya Sangsad.

In his budget speech on June 1, Finance Minister AMA Muhith proposed implementing the new VAT and Supplementary Duty Act, 2012 which is going to impose a uniform 15 percent VAT rate.

Muhith also proposed imposition of Taka 800 excise duty instead of existing Taka 500 in cases where the balance, whether debit or credit, exceeds Taka 1 lakh but does not exceed the limit of Taka 10 lakh.

Similarly, Taka 2,500 excise duty will be imposed instead of existing Taka 1,500 in cases where the balance exceeds Taka 10 lakh but does not exceed the limit of Taka 1 crore; Taka 12,000 will be imposed instead of existing Taka 7,500 in cases where the balance exceeds Taka 1 crore but does not exceed the limit of Taka 5 crore and Taka 25,000 will be imposed instead of existing Taka 15,000 in cases where the balance exceeds Taka 5 crore.

Source: BSS