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 8th Dec 2016

Cabinet okays reforms to boost jobs in made-ups sector

The Union Cabinet chaired by prime minister Narendra Modi has given...

Textiles | On 8th Dec 2016

R&D is key to textile industry’s growth: Kavita Gupta

Research and development is the key to the growth of the textiles...

Textiles | On 8th Dec 2016

China’s economy on track to meet growth expectations

China’s GDP has grown at 6.7 per cent in the first three quarters of...

Interviews View All

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Pranav Mishra
Huemn

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

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search