The government of Bangladesh had previously exempted the country’s local electronics sector from value-added tax (VAT) for several years. However, Energy-efficient bulbs (1-50 watts) and tube lights (18W and 36W) may be getting more expensive as the government proposed to increase the value-added tax (VAT) on light products.
Abul Hassan Mahmood Ali, Finance Minister, informed the nation, during delivery of the FY2024/25 budget, that it has been proposed to increase the VAT on bulbs and tube lights from 5% to 15%.
Earlier it was rumoured that the government could likely withdraw exemptions for the country’s electronics sector in the upcoming fiscal year. The government would potentially impose increased VAT on several goods and services which could include LED bulbs and tube lights, air conditioners and refrigerators.
