Amidst the economic crisis, Bangladesh increased VAT on 43 items, let’s see if Pakistan is in the same situation.

India-Bangladesh relations are continuously deteriorating. The Indian government has repeatedly called for an end to violence against the minority community in Bangladesh. But Bangladesh is not desisting from its activities. We have to increase friendship with Pakistan. And this is the reason why Bangladesh is facing economic crisis. To improve its situation, Bangladesh had to increase VAT on 43 items.

The condition of Bangladesh is not hidden from anyone. Here, additional VAT will be imposed on essential goods to revive the economy. These include medicines, milk powder, biscuits, juices, fruits, soaps, sweets, mobile phones, internet access, food in hotels and restaurants, air tickets, cigarettes and tobacco. An NBR official said that this step is being taken to meet the conditions set by the IMF. According to this, additional revenue of Rs 12,000 crore will be generated in the current financial year.

15% charge will be imposed on sweets and clothes

Now food in hotels and restaurants is going to be expensive in Bangladesh. Till now 5 percent VAT was charged on hotels and restaurants, but now it will be increased to 15 percent. After which the rate will also be increased by the hotel. This clearly means that now dinner will also be expensive. Apart from this, buying clothes will also become expensive. There used to be 7.5% duty on sweets and clothes which will now be 15%.

100% VAT on most tobacco

There is a proposal to increase the duty on liquor from 20 percent to 30 percent. At the import level, VAT on fruit juice has been increased from 20 percent to 30 percent, on tobacco from 60 to 100 percent, apart from this, VAT on betel nut has been increased from 30 to 45 percent.

15% VAT will also be imposed on goods manufactured by the company.

The government is also planning to impose turnover tax based on the annual turnover of business establishments. Currently turnover tax is paid only when the annual turnover is between Tk 5 million to Tk 30 million. The proposal also imposes turnover tax on businesses whose turnover is between Taka 3 million to Taka 5 million. If the annual turnover exceeds Taka 5 million, 15 percent VAT will be charged on the sales of all goods manufactured by that company.