Home / Knowledge / News / Textiles / Bangla govt backtracks, new VAT not until 2017
Bangla govt backtracks, new VAT not until 2017
03
Jun '16
Faced with resistance from businesses, a section of revenue officials and inadequate preparation by the National Board of Revenue (NBR), the Bangladesh government has backtracked on its move to implement the new VAT law from the start of the new fiscal year, according to media reports.

In his budget speech in Parliament on Thursday, Finance Minister AMA Muhith said that the VAT and Supplementary Duty Act 2012, which envisages a universal 15 percent VAT rate, have been rescheduled to be effective from July, 1 2017.

“Unfortunately, the necessary preparation for achieving the above objective is far from satisfactory. Under the above circumstances, government has decided not to fully implement the new act from the next financial year,” Muhith said in his speech.

Instead of going ahead with the new law, Muhith sought to increase VAT for various goods and services including small businesses, particularly shop owners who have been demanding of continuation of package or fixed VAT.

“Our objective to implement the new act has not changed, we will only implement the new Act after one year,” he told the parliament. This would be second year the government backtracked on its stance to enforce the law that will replace the VAT law of 1991.

Businesses have demanded implementation of recommendations of a panel, formed by the government in 2014 by including their representative. The committee suggested multiple rates for VAT on goods and services.

Among other things under the proposed new law, fabrics manufactured by hand-run looms will enjoy VAT exemption, but the fabrics made through power looms will have to pay the VAT from the next fiscal. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 27th Sep 2016

CBEC unveils draft rules for registration under GST

The Central Board of Excise and Customs (CBEC) has unveiled draft...

Textiles | On 27th Sep 2016

Pak spinner Sajjad Textile halts operation

In a filing with the stock exchange, Pakistan yarn spinner Sajjad...

Courtesy: BCG

Fashion | On 27th Sep 2016

Luxury brands need to shift in digital direction: BCG

A new research report from BCG indicates that almost six out of ten...

Interviews View All

Sonia Agarwal
Whitenife

Binoy Ravjani
Hero's Fashion

Jurgen Gauger
Spreadshirt

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
September 2016

September 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search