Bangladesh will have to pay heavily for fighting with India, VAT increased on 43 items.

India-Bangladesh relations are continuously deteriorating. The Indian government has repeatedly asked Bangladesh to curb the violence against the minority community. But Bangladesh did not stop its activities. This is the reason why Bangladesh is going through an economic crisis. Bangladesh has had to increase VAT on 43 items to improve its situation.

The situation in Bangladesh is not hidden from anyone. To revive the economy here, additional VAT will be levied on essential goods. These include medicines, milk powder, biscuits, juice, fruits, soap, sweets, mobile phone calls, internet usage, food in hotels and restaurants, air tickets, cigarettes, and tobacco.

An NBR official said that this step is being taken to fulfill the conditions set by the IMF. According to this, an additional revenue of Rs 12,000 crore will be generated for the current financial year.

Food and drink will be expensive

Now food in hotels and restaurants in Bangladesh is going to be expensive, this is because till now 5 percent VAT was levied on hotels and restaurants, but now it will be increased to 15 percent. After which the rates will also be increased by the hotels. It is clear that now dinner will also be expensive. Apart from this, buying clothes will also be expensive.

It has been proposed to increase the duty on liquor from 20% to 30%. VAT on fruit juice has been increased from 20% to 30% at import level, on tobacco from 60% to 100% and on betel nut from 30% to 45%.

Consideration of imposing turnover tax

The government is also considering imposing turnover tax on the basis of annual turnover of business establishments. Currently, turnover tax is paid only when the annual turnover is between 5 million Taka and 30 million Taka. The proposal also includes imposing turnover tax on businesses whose turnover is between 3 million Taka and 5 million Taka.

If the annual turnover is more than Tk 5 million, then 15 per cent VAT will be levied on the sale of all goods manufactured by that company.