- Turnover tax is overhauled: the 4% tax is replaced by a fixed NBR-set amount (capped at BDT 200,000), the ceiling rises to BDT 5m, and quarterly returns become the default while half-yearly returns are removed.
- BIN registration is broadened sharply, now required for banking, loans, trade licences, MFS merchant accounts, utility links, vehicle registration, and more; VAT registration is also fully automated via e-VAT.
- Input tax credit rules change: labour is removed from the negative list, but downstream sellers face ITC restrictions where goods were exempt at the manufacturing stage.
- All imported services (except First Schedule items) become taxable at 15%, with banks/financial institutions responsible for withholding, depositing VAT, and issuing challans.
- Penalties and appeals are eased: ITC-related penalties and appeal pre-deposit thresholds are reduced, while new penalties target fake stamp/band rolls and VAT software tampering; a six-month legacy demand interest-waiver scheme is also introduced.
Source: pwc.com
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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