Tag Archives: VAT

VAT: Prospect of integration with social security

budget

MNA Editorial Desk: The national budget of Bangladesh for the fiscal year 2018-19 was presented by the finance minister AMA Muhith just a few days ago. Still there are many discussions going on regarding the size of the budget and several changes or provisions of it. One of the most important targets to accumulate the earnings for the expenditures in the proposed budget is by collecting tax revenue from the citizens, a job National Board of Revenue (NBR) is doing with immense precision. It was said that, the government targets to have 10 million registered taxpayers by the fiscal year ...

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No VAT on remittance: NBR

income tax

MNA Business Desk: The National Board of Revenue or NBR has brushed aside as rumours social media posts claiming the government has imposed Value Added Tax (VAT) on the money sent by Bangladeshi expatriates. It clarified in a media release on Wednesday that no such tax has been levied in the budget proposed by Finance Minister AMA Muhith for 2018-19 financial year.  “This is utterly false and nothing but rumour. The NBR thinks the propaganda aims at stopping the flow of remittance through legal channels and encouraging the expatriates to use Hundi,” the release says. Money sent by the expatriates ...

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No VAT on online shopping: NBR

online shopping

MNA Business Desk: Claiming the VAT on online marketing a print mistake, National Board of Revenue (NBR) chairman Md Mosharraf Hossain Bhuiyan on Friday said no VAT will be imposed on online shopping. He made the comment at a post-budget news conference held at Osmani auditorium in Dhaka. NBR chief said five percent VAT on online shopping will not be implemented. Social media including Facebook, Google have to pay as per the income, he added. Prime Minister’s Finance Advisor Mashiur Rahman, Finance Minister Abul Maal Abdul Muhith, Information Minister Hasanul Haq Inu, Agriculture Minister Matia Chowdhury, State Minister of Finance ...

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No VAT on private universities: PM

Islam

MNA Education Desk: Prime minister Sheikh Hasina has said no VAT will be imposed on private universities. Planning Minister AHM Mustafa Kamal briefed the media about the premier’s directives after holding a meeting of the Executive Committee of the National Economic Council (ECNEC) today. Quoting the prime minister, the planning minister, briefing reporters at the planning commission this afternoon, said, there is no need to slap VAT on the private universities now. Yesterday, Finance minister AMA Muhith told reporters after a pre-budget discussion with newspapers and private television channels that VAT will be imposed on universities in the next budget, ...

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Govt to introduce E-chalan to collect VAT, tax

income tax

MNA Business Desk: The government will introduce E-chalan soon for collection of VAT and income tax. Finance secretary Muslim Chowdhury informed the media this at city function Sunday to inaugurated ‘e-chalan’. State minister for finance and planning MA Mannan inaugurated the ‘e-chalan’ at a programme held at the finance ministry. Muslim Chowdhury also said if all payments of the government are made through electronic system, the money is deposited to the government exchequer timely and properly and people will also get rid of sufferings. The government has introduced ‘e-chalan’ to facilitate people to pay fees for online passport, police verification ...

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SC freezes Robi’s bank accounts for 3 days

bank accounts

MNA Business Desk: The Supreme has upheld a decision of the National Board of Revenue (NBR) to freeze all the bank accounts of mobile phone operator Robi on charge of dodging VAT. The Appellate Division of the SC on Thursday stayed for three days a High Court order that stayed the NBR decision. A four-member Appellate Division bench, led by chief justice Syed Mahmud Hossain, passed the order after hearing a petition filed by the revenue board. Earlier, the NBR filed a petition challenging the High Court stay order. The HC on Tuesday stayed the NBR decision to freeze all ...

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Saudi Arabia, UAE introduce VAT for first time

Arabia

MNA Business Desk: Saudi Arabia and the United Arab Emirates (UAE) introduced the Value Added Tax (VAT) for the first time from Monday. It is a five per cent tax on most goods and services to boost revenue. The VAT will be applied on food, clothes, electronics and gasoline, phone, water and electricity bills, as well as hotel reservations, reported news agency. Some outgoings were exempt from the tax or given a zero-tax rating, including medical treatment, financial services and public transport. The UAE estimates that in the first year, VAT income will be around 12 billion dirhams ($3.3 billion). ...

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Government shifted position on budget focusing election

budget

MNA Editorial Desk: The government has shifted its position on budget specially VAT, excise duty hike as they are focusing on the upcoming general election in 2019. Finance Minister AMA Muhith backtracked from his decisions to impose 15 percent uniform VAT and raise excise duty on bank accounts of smaller balance to meet the huge expenditure of the next fiscal year after severe criticism. The businessmen kept protesting the new VAT law for a period of over one year. The opposition leaders as well as leaders from the government have raised voices following public concern after Muhith presented the proposed ...

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VAT to remain 15pc: Finance Minister

Bidi

MNA Business Desk: Finance minister Abul Maal Abdul Muhith on Saturday expressed his determination to keep the new Value Added Tax (VAT) at the 15 per cent. “I’ll not reduce the VAT from 15 per cent, because it has remained so from the beginning. However, many will be taken out of the VAT net,” said the finance minister while talking to reporters at his secretariat office on the upcoming national budget. He said, “I would reduce the VAT slightly, but it would create many problems if I did so.” Earlier, Centre for Policy Dialogue (CPD) has asked the authorities to ...

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Imposition of VAT on English medium illegal: SC

imposition

MNA Editorial Desk: The Supreme Court stayed a High Court order that declared illegal the imposition of 7.5 per cent value added tax (VAT) on the tuition fees of the English medium schools. A four-member bench of the appellate division of SC led by Chief Justice SK Sinha passed the order. The SC also asked to state counsels to file a leave to appeal with a regular bench in this connection and fixed January 29 for the next hearing. In 2010, the government imposed 4.5 per cent VAT on fees and services in English medium schools. In the budget for ...

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VAT on English medium schools fees illegal: HC

English medium

MNA National Desk: The 7.5% value added tax (VAT) on the English medium schools’ tuition fees has been declared illegal by the High Court (HC) on Monday. A bench of Justice Zubayer Rahman Chowdhury  and Justice Mozibur Rahman Miah passed the verdict after hearing a writ petition filed challenging the legality of the VAT imposition on the English medium schools’ tuition fees . The VAT cannot be imposed on the English version schools’ tuition fees from January next year as the imposition of the vat is unfair and contradictory to the constitution, the court said. “The practice of charging VAT ...

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Shops and markets remain shut demanding change in VAT rules

Baboshayee Oikko Forum has been observing strike and closure of operations as shops and markets remain shut from Wednesday morning demanding the reduction in Value Added Tax (VAT) and change in VAT rules. Most of the shops and business organizations are closed from this morning. All the markets and shops have remained closed as we have found visit capital’s Elephant Road Market, Stadium Market and Markets at Old Dhaka. Product and market based business forum has displayed banner in front of their shops at Old Dhaka supporting the protest. They are even doing miking in the area and bringing out ...

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Shops and markets remain shut demanding change in VAT rules

VAT

MNA National Desk: Baboshayee Oikko Forum has been observing strike and closure of operations as shops and markets remain shut from Wednesday morning demanding the reduction in Value Added Tax (VAT) and change in VAT rules. Most of the shops and business organizations are closed from this morning. All the markets and shops have remained closed as we have found visit capital’s Elephant Road Market, Stadium Market and Markets at Old Dhaka. Product and market based business forum has displayed banner in front of their shops at Old Dhaka supporting the protest. They are even doing miking in the area ...

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Mobile operators to pay Tk. 950 million in VAT

VAT

MNA Business Desk: The SC (Supreme Court) has ordered the six mobile phone operators in Bangladesh to pay the government Tk. 950 million in VAT against the rent they paid in last four years. A four-strong Appellate Division bench headed by Chief Justice SK Sinha carried a verdict to this effect on Thursday. It ejected a High Court order that had remained a National Board of Revenue (NBR) instruction to pay the tax.The stay order had come after the operators moved the High Court challenging the NBR instruction. The Appellate Division well-ordered persistence of the hearing of a rule the ...

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Tofail said VAT will not damage businesses

tofail

MNA Business Desk: Tofail Ahmed, the Commerce Minister, has said the new and ‘realistic’ law on VAT will not damage businesses and requested the businessmen not to worry about the upcoming VAT on primary level of business. The law comes to effect from July this year has many worrying over the possibility of the tax being imposed at import, production, wholesale and retail stages. Md. Enayetullah, chief of a wholesale traders association in Moulvibazar, spoke of this fear while the minister was meeting businesspersons to ensure steady supply and prices of commodities during the month of Ramadan. “Those of us ...

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Government would not impose 15% VAT at a time

MNA Business Desk: Tofail Ahmed, Commerce Minister of the state, on Sunday said the government would not impose 15% Value Added Tax (VAT) on businessmen at a time. He with the finance minister is wide-awake about the implementation of the VAT Law. “Both the finance minister and me had held several meetings with the businessmen about the implementation of the VAT law. We wouldn’t do anything that obstructs investment. We are cautious about the implementation of the new VAT law,” he quoted. The minister confirmed it while addressing a seminar named ‘Bangladesh is on the highway of development under the ...

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