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

Vietnam's textile-garment export turnover $16 bn in H1 '18

Apparel/Garments | On 19th Jul 2018

Vietnam's textile-garment export turnover $16 bn in H1 '18

Vietnam is among the world's five biggest textile exporters and...

Courtesy:  Pratibha Syntex

Apparel/Garments | On 19th Jul 2018

India's Pratibha Syntex aims $200 mn sales revenue by 2020

Pratibha Syntex, with interests in fibre, spinning, knitting and...

Kenya to use Sh6 bn Indian loan to upgrade Rivatex

Textiles | On 19th Jul 2018

Kenya to use Sh6 bn Indian loan to upgrade Rivatex

Kenya will use a Sh6 billion loan from India’s Exim Bank to expand...

Interviews View All

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Yash P. Kotak
Bombay Hemp Company

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

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

Leave your Comments


July 2018

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

news category


Related Categories:

Advanced Search