VALUE ADDED TAX (VAT & SD) HIGHLIGHTS OF BUDGET 2024-2025

 

VALUE ADDED TAX (VAT & SD) HIGHLIGHTS OF BUDGET 2024-2025

 

€.  Any entity (regardless of the legal form) having turnover more than Tk. 10 crores will now be considered as Withholding Entity. [ Section-2]

 

€.  The deposit amount of claim by VAT authority, for appeal at Commissioner and Tribunal stage, has been proposed to be reduced to 10% from 20%. [ Section-121]

 

€.  “Cost And Management Accountant” have been proposed to be considered as VAT Advisor/VAT representative. [ Section-130]

 

€.  The exemption for tour operators under Service Code S077.00 has been withdrawn and from now onwards VAT will be applicable at 15%.

 

€.  Advance Tax (AT) on import stage has been exempted for the following items:

 

H.S Code	Destription of goods SRO-148
2905.31.10	Ethylene glycol (ethanediol) imported by Industrial IRC holder VAT compliant PET chips manufacturing industry
2917.36.10	Terephthalic acid imported by Industrial IRC holder VAT compliant PET chips manufacturing industry
8418.69.97	Chiller (Capacity 50 tons or above)

 

 

€.  VAT is exempted at import stage In according to SRO 137 VAT:

H.S Code	Destription of goods
3817.00.10	Linear Alkyl Benzene (LAB) imported by Industrial IRC holder VAT compliant LABSA manufacturing industries
3402.42.10	Alcohol Ethoxylates (AEO) imported by Industrial IRC holder VAT compliant Sodium Lauryl Ether Sulphate (SLES) manufacturing industries

 

 

€.  Value Added Tax (VAT) has been increased for the following items:

 

H.S Code/ Service code	Description of Goods	VAT Rate
		Existing	Proposed
All H.S Code (under 20.08)	Mango bar	5%	15%
All H.S Code (under 20.09)	Mango juice, pineapple juice, guava juice and tamarind juice	5%	15%
All H.S Code (under 85.39)	All kind of energy saving bulbs and tube lights (18 Watt and 36 Watt)	5%	15%
All H.S Code (under 48.13)	Cigarette / bidi paper (26 ± 2 gm / 2m)	7.5%	15%
S060.00	Buyer of auction products	7.5%	15%
S064.00	Amusement park and Theme Park	7.5%	15%
S009.00	Auction house	10%	15%
S013.00	Automated Laundry	10%	15%
S040.00	Security service	10%	15%
S066.00	Lottery ticket seller	10%	15%
S012.20	SIM Card or e-SIM Supplier	200 TK. Per SIM	300 TK. Per SIM
All H.S Code (under 69.04)	Ordinary bricks made without machinery	450 tk (per thousand	500 tk (per thousand
	Ordinary bricks made with machinery	500 tk (per thousand	600 tk (per thousand
	Automated machine-made brick	700 tk (per thousand	800 tk (per thousand
	Brick chips	700 tk (per 100 CFT)	800 tk (per 100 CFT)
	Micad bats	500 tk (per 100 CFT)	600 tk (per 100 CFT)

 

€.  Supplementary Duty (SD) has been increased at supply stage for the following items:

** All kinds of ice-cream = Existing 5% Proposed 10%

** Carbonated Beverage = Existing 25% Proposed 30%

** Cigarette Containing tobacco = Existing 65% Proposed 66%

** Telephone (all service offered by sim/rim cards) Existing 15% Proposed 20%

€.   Excise duty on offshore banking has been removed for individuals and companies.

 

Md Sabbir Hossain

Senior Manager (VAT) of Dysin Group

NBR Enlisted VAT Consultant 23

Mobile No: 01715-381635.