United News of Bangladesh

The LPG Operators Association of Bangladesh (LOAB) has strongly opposed the government’s proposal to increase Value Added Tax (VAT) on Liquefied Petroleum Gas (LPG) cylinders from 7.5% to 10%. They warned that the move could severely destabilise the country’s energy security and hurt millions of low-income families. LOAB President Muhammed Amirul Haque in a statement said the proposed tax hike poses a ‘serious threat’ at a time when domestic natural gas reserves are dwindling and new household gas connections have already been suspended. “LPG is the primary alternative fuel for millions of families. Increasing VAT will make it less affordable and limit access for those who need it the most,” he said. Prices Up, Prices Down: New budget brings mixed bag of VAT, duty changes According to LOAB, more than 1.5 million tons of LPG are imported annually by the private sector with 97% of it used for cooking. The usage is equivalent to approximately 2 million cubic feet per day (mmcfd) of natural gas and supports over 40 lakh households across the country. Amirul Haque said  the widespread use of LPG plays a critical role in reducing deforestation especially in rural areas where it replaces traditional biomass fuels like firewood. “With more than 4 crore LPG cylinders in circulation and rising demand each year, this tax increase could not only threaten clean energy adoption but also place an undue burden on low-income consumers,” he added. LOAB has called on the government to reconsider the proposed VAT increase in the interest of national energy security, environmental sustainability, and public welfare.  

The National Board of Revenue (NBR) has extended the deadline for submitting VAT returns online through the Integrated VAT Administration System (iVAS) for the tax period of May, 2025. In consideration of the extended public holidays due to the upcoming Eid-ul-Azha, the deadline has been extended till June 19, said a notification issued by the NBR. The extension aims to facilitate taxpayers in meeting their compliance obligations amid the long holiday period.

The National Board of Revenue (NBR) is contemplating to introduce a system to account its officers for skipping any business entity without enlisting that in the Value Added Tax (VAT) net. For this purpose, the existing VAT law has to be changed. The revenue collecting authority is thinking to implement this plan aiming to induct every business entity having Tk 50 lakh turnover early under the VAT net. It has reduced the amount from Tk 3 crore in last January. NBR lifts 5pc advance import tax on crude soybean and palm oil Currently, the NBR is under huge pressure from the International Monetary Fund (IMF) to improve the revenue collection to increase the tax-GDP ratio to 7.9 percent by next June, which is currently 7.4 percent. The IMF has stopped to release the 3rd and 4th tranches of the $4.7 billion loan programme  asking the government to fulfill all its conditions. It has asked the NBR to collect some Tk 2 lakh crore in the remaining months of the 2024-25 fiscal to meet the conditions for the last two trenches of the $4.7 billion loan. Talking to UNB a senior official of the NBR said this week that it might take time, but the system should be like that if any VAT officer goes to a place every shop of that area should come under the VAT net. NBR lifts suspension of Tax Tribunal member Shafiqul, cites no reason In this connection, he said that after reducing the VAT yearly turnover to Tk 50 lakh it means that any shop that sells Tk 15,000 per day is eligible to come under the VAT net. “So there is no need to ask any shop owner whether it sells upto this amount. Each and every shop has to be under VAT net, there should be combing drive in a specific area, big or small,” he said wishing anonymity. He also said that the NBR is thinking to implement this plan without any discrimination. “We are thinking to make changes in the respective law to hold responsible the specific official for any specific region who will skip any shop,” he added. Next budget to focus on removing non-tariff barriers: NBR Chairman He said that if any business entity is skipped, the official of that particular region will be liable. Responding to a query regarding shortage of manpower for this job, the NBR official said that they are aware about this. “If necessary, it will take time. But no business entity should be left out from this net. If needed the area can be a small Initiative,” he said. NBR chairman Md Abdur Rahman Khan recently  in a pre-budget meeting said that they had reduced the yearly turnover amount intensionally to bring all business entity under the VAT net. “We want to expand the VAT net, we have started our job, we want to ensure 100 percent coverage in a specific area, no one will be left out,” he told the meeting. The NBR has been able to collect some Tk 50,844 crore till February 2025 against the target of Tk Tk 69,103 crore. It had been able to collect Tk 53,426 crore till February 2024. It’s a 4.83% negative growth.  

Customers will no longer have to pay Value Added Tax (VAT) for purchases at the superstrores. The retail price of the products will be the final price to pay, according to a National Board of Revenue (NBR) release. NBR reduces VAT on biscuits by half The NBR's VAT department issued a notification in this regard on Thursday. The NBR authorities and the supershop owners took the decision following several meetings. Earlier, VAT rates varied ranging from 1.5% to 5%, with a 7.5% rate applied during last year’s budget. Monetary Policy: Private sector unhappy with lower credit flow target Chain super shop owners had been objecting this for a long time.  

The National Board of Revenue (NBR) has issued several notifications by re-fixing the rates of VAT, Supplementary Duty and Excise Duty on some goods and services, which were increased on January 9, aiming to strengthen the country's economic base. The government had issued the "Value Added Tax and Supplementary Duty (Amendment) Ordinance, 2025" and "The Excises and Salt Act (Amendment) Ordinance, 2025" on January 9, 2025. Later, considering the requests of various professional organizations, civil society and stakeholders, in the larger public interest, the National Board of Revenue has issued 4 new notifications on Wednesday reducing the existing VAT rate, VAT deduction rate at source and Supplementary Duty rate on some goods and services. Medicines: In order to make medical services more accessible to all sections of the population, the increased VAT rate on the pharmaceutical industry at the business level has been completely withdrawn and the previous rate of 2.4% has been maintained. Read more: VAT on hotels, restaurants to be revised to previous level: NBR With the withdrawal of the additional VAT imposed on medicines, the continuous development of the pharmaceutical industry will continue and the price of medicines will not increase at the general consumer level. Mobile Phone and ISP Services: In order to continue the ongoing digitization activities of the country and to create a modern IT-savvy young generation and increase online-based activities, the increased supplementary duty on services provided through the use of mobile phone SIM/RIM cards and the newly imposed supplementary duty on ISP services have been completely withdrawn. With the complete withdrawal of the increased/newly imposed supplementary duty on mobile phone and ISP services, the cost of consumers in these two sectors will not increase. Restaurants: In order to facilitate the large population of the country to consume food in restaurants at affordable prices, the additional VAT imposed on all restaurants except three-star, four-star and five-star hotels has been completely withdrawn. Read more: VAT reduction on medicines recommended: Health Adviser As a result of the complete withdrawal of the additional VAT, the general public will be able to consume food in these restaurants at the previous price. Motor vehicle garages and workshops: In the public interest, the increased VAT rate has been completely withdrawn in the case of motor vehicle garage and workshop services. As a result of the complete withdrawal of the additional VAT, the price of the related service will not increase. Others: In the same consideration, the additional VAT imposed on the marketing of other clothes except for own-brand ready-made clothes has been completely withdrawn. In addition, the VAT rate on services has been reduced from 15 percent to 10 percent in the case of non-AC hotels, dessert shops, and marketing of own-brand ready-made clothes. Read more: Commerce Adviser defends govt’s move to increase VAT A press release from NBR said that that in the larger interest of the people of the country, in the last few months, the National Board of Revenue has provided massive tax exemptions on import duty, regulatory duty, VAT, advance income tax and advance tax on edible oil, sugar, potatoes, eggs, onions, rice, dates and pesticides. In order to ensure easy availability of books for students at all levels of Bangladesh, to establish a modern and information technology-based education system and to improve the quality of the education system, VAT exemption has been provided for e-book services at the local supply and import level. VAT exemption has been provided on the fast, safe and environment-friendly metro rail service for its important role in reducing traffic congestion. In addition, the National Board of Revenue has completely withdrawn the excise duty on Hajj tickets in order to reduce the expenses of Hajj passengers.

The National Board of Revenue (NBR) has decided to revise the VAT on hotels and restaurants to the previous level. NBR Member (VAT Policy) Mohammad Belal Hossain Chowdhury disclosed the decision on Thursday. The NBR will issue a notification in this  regard today. Ailing VAT collection: NBR wants answers from field level offices On January 9, the government had issued an order increasing a 15 percent VAT from the previous 5 percent in the sector. But the decision sparked widespread criticisms in the country. Bangladesh Restaurant Owners Association announced to form nationwide human chains on Thursday demanding reduction in Value Added Tax (VAT).

The price of liquefied petroleum gas (LPG) has been slightly raised following a change in the structure of the value-added tax (VAT) by the National Board of Revenue (NBR), according to the Bangladesh Energy Regulatory Commission (BERC). In a press release, the BERC announced that the price of LPG per kg has been set at Tk 121.56, up from Tk 121.19, showing an increase of Tk 0.37. As a result, the price of a 12 kg LPG cylinder will now be Tk 1,459, an increase of Tk 4, effective from January 14 (Tuesday). Prices for other sizes of LPG cylinders—ranging from 5.5 kg to 45 kg—will also rise accordingly, the BERC added. LPG exempted from VAT at production stage Besides, the price of “auto gas” (LPG used for motor vehicles) has been adjusted to Tk 67.27 per litre, up from Tk 66.78 (including VAT). However, the price of LPG marketed by the state-owned LP Gas Company will remain unchanged, as it is locally produced and holds a market share of less than 5 percent. LPG witnessed the highest price at Tk 1,498 (per 12 kg cylinder) in the local market in February last year.

The Consumers Association of Bangladesh (CAB) has urged the government to withdraw its recent decision to increase VAT and supplementary duties on over 100 essential goods and services, citing its potential to exacerbate inflation and intensify public suffering. Following recommendations from the International Monetary Fund (IMF), the National Board of Revenue (NBR) issued a notification imposing higher VAT and supplementary duties on items such as mobile and internet services, medicines, LPG, fruits, biscuits, detergents, soaps, tomato ketchup, kitchen towels, raw materials for rod production and other products, it said in a statement on Sunday. CAB Chattogram division leaders expressed concern that the decision would worsen the struggles of lower- and middle-income families already reeling from high inflation and soaring costs of essentials. The statement said food inflation in 2024 remained consistently high, peaking near 14% in November and around 13% in December. Govt's VAT, SD hike on 100+ products suicidal: DCCI Prices of non-food essentials also rose sharply, making it increasingly difficult for families to manage people’s expenses, it added. The recent VAT hikes will only fuel inflation further, creating an environment ripe for unscrupulous businesses to raise prices indiscriminately, the CAB leaders said. CAB leaders said that previous initiatives such as withdrawing VAT and import duties on 29 items, failed to benefit consumers due to the absence of monitoring, as corporate groups and importers pocketed the savings. They also criticised the decision to raise VAT on life-saving medicines, warning of dire consequences for families already burdened with rising medical costs. CAB urged the government to focus on broadening the VAT base, simplifying tax procedures, and preventing tax evasion. They also called for increased transparency and accountability in the NBR. Speakers at CAB event in Chattogram call for social resistance against dishonest traders Instead of imposing indirect taxes that disproportionately affect low-income groups, the government should emphasise direct taxation to ensure equitable revenue collection, the statement added. CAB leaders demanded the immediate withdrawal of the VAT and supplementary duty hike or at least its suspension until after Ramadan to mitigate public suffering.

The Dhaka Chamber of Commerce & Industry (DCCI) has raised serious concerns over proposed hikes in industrial gas prices and VAT, warning they could disrupt business, deter investment and undermine export competitiveness. Petrobangla recently submitted a proposal to the Bangladesh Energy Regulatory Commission (BERC) to more than double the per-unit price of gas for industrial and captive consumers—from Tk 30 and Tk 31.50 to Tk 75.72. The move aims to alleviate the government’s subsidy burden on gas production costs. Simultaneously, the National Board of Revenue (NBR) has raised income tax for motorcycle, refrigerator, air-conditioner, and compressor manufacturers from 10% to 20%, reversing a prior commitment to maintain reduced rates until 2032. In a statement, the DCCI highlighted that such measures, if implemented, would significantly increase production costs, placing inflationary pressure on both industries and consumers. This, the DCCI cautioned, could deter local and foreign investment, jeopardise Bangladesh’s competitive standing in the global market, and hinder the establishment of new industries. “The proposal to increase gas prices without ensuring uninterrupted supply presents a formidable challenge for businesses,” the DCCI said. “The cost of doing business will skyrocket, impacting both domestic and export-oriented industries. This would not only reduce profitability but also erode Bangladesh’s competitiveness in international markets.” Read: Private sector facing various challenges: DCCI The chamber said that the negative implications of inconsistent policies. The abrupt withdrawal of promised tax incentives, it argued, could tarnish Bangladesh’s reputation as an investment-friendly destination. “Such a reversal sends a detrimental message to both local and foreign investors, undermining confidence and casting doubt on policy reliability,” the statement added. A Call for Collaboration The DCCI urged the government, BERC, and Petrobangla to reconsider the proposed gas price hike. It also called for a review of the VAT and tax rate increases, suggesting that these measures could exacerbate inflationary pressures and operational costs for businesses at a time of global economic uncertainty. “To foster sustainable economic growth, it is imperative to maintain a stable, business-friendly environment,” the DCCI noted. “This requires long-term policy commitments, tax benefits, and active collaboration between the government, private sector, and other stakeholders.” Broader Implications The proposed tax hike on manufacturing industries such as motorcycles, refrigerators, and air-conditioners comes at a time when businesses are already grappling with an unstable economic climate. The DCCI warned that these measures could dampen local industrial activity, reduce foreign investment, and ultimately curtail economic recovery. Read more: Businesses agree with central bank's steps against bank robbers: DCCI With Bangladesh striving to recover amid global economic challenges, the DCCI reiterated the need for “cost-effective policies that ensure continuity and stability.” It argued that policy reversals and steep cost increases could undermine the country’s efforts to attract investors and sustain economic momentum.

The decision to raise VAT and taxes on various products has been taken to boost government revenue rather than to meet International Monetary Fund (IMF) conditions, Finance Adviser Dr Salehuddin Ahmed said on Thursday. Speaking to journalists after a meeting of Advisers Council Committee on Government Purchase at the Secretariat, the adviser said the adjustments were necessary to fill revenue gaps created by significant tax exemptions on certain goods. Salehuddin Ahmed said that the hike in VAT on 43 items would not affect the prices of essential commodities or burden ordinary citizens. He said that higher taxes have been imposed on luxury items, such as three-star and higher-rated hotels, while sparing establishments of standard quality. "The objective is to ensure a balanced revenue collection system that does not inconvenience the general population," he said. IMF again eases foreign exchange reserve target for Bangladesh The adviser, however, expressed optimism about economic stability in the coming year, adding that banks would receive sufficient support to maintain liquidity. "We aim to allocate increased budgetary resources to education and health, strengthening these vital sectors," he said. The proposal, which has been sent for presidential approval, will be implemented through an ordinance once authorised. While the adjustments target luxury goods, concerns persist regarding their potential impact on the broader economy.