BUILD Proposes Flat 10% VAT Rate for Bangladesh

• BUILD proposes a flat 10% VAT rate.
• BUILD CEO highlights the complexity of the current VAT structure.
• There are eight different VAT rates, including a universal 15% rate.
• Section 46(1) of the VAT law does not allow VAT credit or rebates for rates below 15%, resulting in an effective VAT burden of around 30%.
• 53% of economic activities fall outside the VAT system.
• NBR Chairman supports a single VAT rate, but the exact percentage is still under discussion.
• AmCham submitted budget recommendations to the NBR, emphasizing tax reforms and business-friendly policies.
• AmCham urged the withdrawal of the NBR’s No Objection Certificate (NOC) requirement.
• AmCham proposed adjustments to withholding tax rates.
• AmCham recommended waiving the mandatory submission of income tax return slips for credit card issuance up to Tk5 lakh.
• AmCham proposed preferential tax rates for Offshore Banking Units (OBUs).
• AmCham called for the exclusion of TDS on imports under Section 120 and a reduction in exporter tax rates from 1% to 0.5% under Section 123.

Source: tbsnews.net

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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