The interim government of Bangladesh has decided to increase the value-added tax (VAT) on 43 goods and services, a move that primarily targets higher-income groups while ensuring that prices of essential items remain unaffected. Finance adviser Salehuddin Ahmed recently addressed concerns, assuring that the increase would not lead to higher costs for basic commodities.
The affected products and services include upscale garment stores, powdered milk, biscuits, juice, mattresses, transformers, tissue papers, factory-made pickles, mobile bills, internet bills, as well as four-star and above restaurants, branded sweet shops, airfares, and hotel rents.
The VAT hike is part of the government’s strategy to boost state revenues, with no intention of complying with the International Monetary Fund’s (IMF) demands. Notably, the VAT on branded clothing outlets will increase from 7% to 15%.
In December, the IMF had requested an overall VAT increase to 15% to release the fourth installment of a $4.7 billion financial aid package.
Related Topics
- Milan Introduces Italy’s Strictest Smoking Ban
- Top 10 Best Clothing Brands in India for 2025
- Skullman® Licensed Apparel Brand Celebrates Three Decades as a Pop Culture Icon
