The government of Bangladesh had previously exempted the country’s electronics sector from value-added tax (VAT) for several years. However, according to new rumors, the government could likely withdraw this exemption in the upcoming fiscal year.
Amongst the goods and services likely to face increased VAT; the National Board of Revenue (NBR) reportedly plans to impose VAT on air conditioner manufacturing. The VAT exemption for air conditioner manufacturing can possibly be phased out this fiscal year and be subjected to a new 5% VAT. Mobile operators can face increased taxes on the sale of SIM cards.
The government can potentially impose increased VAT on more than 13 goods and services. Other items could include LED bulbs and tube lights, various juices, mango bars, rolling paper, security services, auction services, and refrigerators.
Listed items may face a 15% VAT at the manufacturing stage.
