The government plans to increase the value-added tax (VAT) on more than 13 goods and services such as LED bulbs and tube lights, various juices, mango bars, rolling paper, security services, auction services, refrigerators, and air conditioners.
Most of these items may face a 15% VAT at the manufacturing stage
The officials of Finance Ministry said that most of these items may face a 15% VAT at the manufacturing stage. Additionally, VAT ommision for air conditioner manufacturing is likely to be phased out this fiscal year ending on 30 June, likely subjecting it to a new 5% VAT in FY25.
VAT rate is expected to increase from 5% to 10% for refrigerator manufacturing.
Furthermore, mobile operators are expected to face an increase in tax on the sale of SIM cards, rising from the current Tk200 to Tk300.
The International Monetary Fund (IMF) has advised the government to withdraw various tax exemptions, prompting the National Board of Revenue (NBR) to plan their discontinuation and rate increases for the next financial year.
Although the government had previously exempted the country's electronics sector from VAT for several years, the NBR plans to impose VAT on air conditioner manufacturing starting in the next financial year.
