Dhaka – Finance Minister Abul Maal Abdul Muhith on Tuesday said rate on Value Added Tax he has proposed in the national budget is likely to be revised after debate in parliament.
The minister’s comment came after he drew criticism from different political spectrum, including the ruling quarters, as he proposed a 15 per cent flat VAT and higher rate of excise duty on savings account balance.
Discussions on implementation of the new VAT law are underway in the national parliament.
“We will announce the decision on new VAT law implementation when the proposed budget will be passed,” he told journalists at a function at the Finance Ministry in Dhaka.
The finance minister said there is no scope to disclose anything regarding the budget when the budget discussion is on.
He also kept in suspense on the proposed excise duty on bank deposits saying the decision would be changed with the passage of the budget.
Muhith, in his budget speech placed in parliament on June 1, proposed implementing the new VAT and Supplementary Duty Act, 2012 which is going to impose a uniform 15 percent VAT rate.
He also proposed imposition of Taka 800 excise duty instead of existing Taka 500 in cases where the balance, whether debit or credit, exceeds Taka 100,000 but does not exceed the limit of Taka 1 million.
Similarly, Taka 2,500 excise duty will be imposed instead of existing Taka 1,500 in cases where the balance exceeds Taka 1 million but does not exceed the limit of Taka 10 million; Taka 12,000 will be imposed instead of existing Taka 7,500 in cases where the balance exceeds Taka 10 million but does not exceed the limit of Taka 50 million and Taka 25,000 will be imposed instead of existing Taka 15,000 in cases where the balance exceeds Taka 50 million.