The complexities have arisen over the collection of VAT as the National Board of Revenue (NBR) proposed setting new prices of power by incorporating the existing 5% VAT rate into it. That would allow NBR to absorb some of the negative reaction that is sure to arrive once the new VAT rate is introduced. Officials of the Bangladesh Energy Regulatory Commission (BERC), NBR, Power Development Board (PDB) and Rural Electrification Board (REB) have held several meetings on how to add the VAT to retail prices. The official said: “Distribution companies need to change their billing papers, which currently contain a 5% VAT rate. Power agencies and companies have already proposed we increase wholesale and retail prices.”The BERC will reset power prices after holding public hearings on their proposals.

Source: Dhaka Tribune June 15, 2017 18:11 UTC