- NBR is seeking consensus from businesses on VAT rates.
- NBR is open to a single, universal VAT rate if businesses agree.
- NBR suggests a lower rate if needed to simplify the VAT regime.
- Multiple VAT rates have led to inconsistencies.
- Bangladesh currently has a standard VAT rate of 15 percent, with lower rates for specific goods and services.
- VAT is a significant source of tax revenue for Bangladesh.
- Bangladesh adopted VAT in 1991, replacing excise duties and sales tax.
- Bangladesh initially adopted the New Zealand VAT model.
- The interim government has temporarily revoked or reduced VAT rates for some products and services.
- A consensus among businesses on the most effective VAT structure is needed.
- A well-structured VAT system can contribute to economic growth.
- Policymakers should engage with stakeholders to devise a VAT system that balances simplicity, fairness, and economic efficiency.
Source: 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.
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