Value added taxation in Bangladesh

It has been suggested that this page be merged into Value-added tax. (Discuss) Proposed since July 2017.

Value Added Tax or VAT in Bangladesh is an indirect consumption tax which is paid by consumer or buyer. VAT is imposed at each stage of production-supply chain based on the value added to the product at that stage. The end consumer ultimately pays the VAT.^[1][2]

Overview

The National Board of Revenue, under the leadership of Shah Abdul Hannan introduced VAT in Bangladesh 1991.^[3] National Board of Revenue, being the central authority for tax administration in Bangladesh, monitors and regulates VAT collection according to the Value Added Tax Law, 1991.^[4] The VAT collected from people are used by the Government of Bangladesh in Development activities of the country. Current standard rate of Value Added Tax in Bangladesh is 15% of the goods or service price. Other than this rate there are some truncated value based preferential rates on some services. At present the following preferential rates are applicable by Statutory Rules and Order 1.5%, 2%, 3%, 4%, 4.5%, 5%, 5.5%, 6% and 9%.^[5][6]

References

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