- Proposed substantial increase in indirect taxes, such as VAT, for next fiscal year causing concern amid persistent inflation
- Finance ministry and NBR gearing up to boost revenue from VAT and supplementary duties
- NBR aims to collect additional Tk 94 billion in VAT for fiscal year 2024-25
- Finance ministry aims to generate 51% more revenue from VAT and supplementary duties next fiscal year
- Fear that VAT tax hikes will worsen hardship for low and middle-income earners
- NBR has already imposed 15% VAT on metro rail ticket prices, making rides costlier
- Anticipation of VAT concessions and exemptions for local industries being reduced in coming fiscal years
- Bangladesh heavily relies on indirect taxation like VAT for revenue collection
- Indirect tax collection accounted for 66% of total tax revenue in last fiscal year
- Increase in VAT can disproportionately affect lower-income individuals, making it regressive in nature
- Progressive tax system places greater financial responsibility on those with higher incomes for more equitable tax burden distribution.
Source: today.thefinancialexpress.com.bd
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
