“I hope local businessmen will definitely be happy about the decision as the premier has given her opinion in this regard,” he said. “It is not true that prime minister had asked me to settle the VAT issue with businessmen.”Finance Minister AMA Muhith is now visiting Middle East and the prime minister will also go there, and after their return, they will fix the VAT rate after May 20, he said. Amid a wide range of criticism and opposition from business people, the Value Added Tax (VAT) Act 2012 will be effective from July 1 at a flat rate of 15% for almost all products. “Prices of finished goods have soared immediately, affecting the living expenses of consumers as they have to pay 15% VAT,” Former finance adviser to caretaker government AB Mirza Azizul Islam told the Dhaka Tribune. “I think VAT rate should be 10% in Bangladesh as most countries in the region have below 15%.”Azizul suggested considering the rate based on per-capita income.

Source: Dhaka Tribune May 16, 2017 18:22 UTC