National Board of Revenue (NBR) plans significant VAT hikes to meet IMF revenue targets, aiming to generate an additional Tk 12,000 crore this fiscal year. These lead to key changes include:
- Restaurants: VAT to increase from 5% to 7.5%.
- Non-AC Hotels: VAT may double from 7.5% to 15%.
- Clothing Items: VAT on both branded and non-branded clothing may rise from 7.5% to 15%.
- Trading Sector: 5% VAT rate may increase to 7.5%.
- Medicine Business: VAT rates may also rise.
Other Measures:
- Air ticket costs are expected to increase due to higher excise duties.
- Supplementary duties will rise at the import stage for products like soap, detergent, paint, and betel nut.
- VAT and supplementary duties on tobacco products will also increase.
- The truncated VAT rates on 43 goods and services will be abolished, transitioning to a standard 15% VAT rate for most products and services.
An official announcement is anticipated soon.
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