‘Govt to reevaluate recent VAT hike on essential items, services’
NN Online:
Finance Adviser Dr Salehuddin Ahmed on Thursday said the government is currently reviewing the recently increased VAT rates on essential items and sectors such as medicine and restaurants, acknowledging the impact these changes have on ordinary citizens.
“The government has increased VAT on some items like ISP, phone, foreign imported juice which not many people buy and those do not impact so much. Despite this, the government has reviewed on Thursday and is also reconsidering the issue on some items and it will be made public once finalised,” he said.
The finance adviser was replying to the queries of reporters after chairing two separate meetings on the Advisers Council Committee meeting on Economic Affairs and Government Purchase held at the Cabinet Division Conference Room at Bangladesh Secretariat on Thursday.
He said the impact on prices has occurred due to VAT to some extent, but on the whole it is due to manipulation on the supply chain.
“We’ll review VAT again on some essential items like medicine, restaurants alongside some other items. On the whole, the issue of VAT would be reconsidered on the basic essential items which affect the common people,” he added.
Answering a question, he said the imposed VAT on clothes would also be reviewed.
Asked about his recent participation in the Board of Governors meeting of the Islamic Development Bank (IsDB) held in Saudi Arabia, the adviser said that usually the IsDB supports Bangladesh in purchasing fuel oil and gas.
“We’ve proposed them to support Bangladesh in purchasing fertilizer also. They have agreed in principle and we’ll talk further…I have proposed and the IsDB officials have agreed. More talks will take place in this regard,” he added.
Replying to another question about the impact of imposing VAT on many items on the business community, he said it is not possible for the Ministry of Finance to take care of everything.
“About the issue of VAT, we’ll reduce it to some extent on some items,” he added.
The National Board of Revenue (NBR) has recently issued a notification making new rates of VAT and SD on items such as mobile phone usage, internet, tissue, grapes, apples, melons, readymade clothes, restaurants, sweets, LP gas, spectacles, and hotels effective.