Bangladesh intends to proceed with introducing a uniform 15% rate of value-added tax (VAT) from July 1. The change is to be stimulated together with the implementation of Bangladesh’s new value-added tax law, drawn up in 2012.
Speaking at a recent business forum, Bangladesh’s Finance Minister, told businesses that there would be no deferment of the VAT law’s effective date and urged businesses to adapt their systems to the changes. Exemptions will be in place for basic goods and services for lower income taxpayers.
As well as boosting revenues for Bangladesh, the new VAT regime is intended to make tax compliance significantly simpler, especially for smaller firms.
