The National Board of Revenue is likely to raise the Vat-free annual turnover limit to Tk30 lakh from existing Tk24 lakh for small businesses of production, trading and services sectors.
Finance Minister AMA Muhith has already instructed the board to finalise the threshold, officials said.
Leading chambers and trade bodies, including the Federation of Bangladesh Chambers of Commerce and Industry, Foreign Chamber of Commerce and Industry and Bangladesh Chamber of Industries, in their pre-budget proposals had urged the government to widen the exemption limit to facilitate growth of small businesses.
According to the VAT and Supplementary Duty Act-2012, which will come into effect from 2016, a single VAT rate at 15% will be imposed on all businesses having a turnover above Tk80 lakh.
Earlier in March, a nine-member review panel, headed by a former NBR member placed their recommendation to the finance minister on implementation of VAT and SD Act 2012. The panel suggested the turnover VAT ceiling should be raised to Tk36 lakh from existing Tk24 lakh to facilitate growth of small and cottage industries, rural enterprises and to reduce hassles of retailers and small businesses.
