Bangladesh’s National Board of Revenue (NBR) has clarified that superstores must sell goods at the maximum retail price (MRP) inclusive of Value Added Tax (VAT), with no additional VAT to be charged to consumers. The directive also outlines input tax rebate eligibility and confirms the VAT structure applicable to superstores under current regulations.
Bangladesh’s National Board of Revenue (NBR) has clarified that superstores cannot charge consumers any additional Value Added Tax (VAT), as the tax is already included in the maximum retail price (MRP) printed on goods.
The clarification was issued in an instruction letter signed on 9 February by NBR’s Second Secretary (VAT Law and Regulations), Barrister Md. Badruzzaman Munshi. It states that superstore owners must sell products at the printed retail price, which already incorporates the standard 15% VAT.
Under the directive, consumers will pay only the MRP at the point of sale, with no extra VAT added. The NBR also confirmed that superstores opting for the standard 15% VAT rate are eligible for an input tax rebate, provided they meet all legal conditions. However, those paying VAT at the reduced 7.5% rate are not entitled to such a rebate.
The measure aims to regulate pricing, protect consumer rights, and ensure a structured Value Added Tax system. The NBR is also reviewing the list of essential goods that are VAT-exempt at the production stage but taxed at the business stage to avoid additional tax burdens on consumers.
Under the Value Added Tax and Supplementary Duty (Amendment) Ordinance, 2025, the VAT rate for certain businesses was raised from 5% to 7.5% with effect from 9 January 2025, bringing superstores under the revised rate unless they opt for the standard regime under the Value Added Tax and Supplementary Duty Act, 2012.
