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CPD: New VAT law may shoot up gas, electricity prices

  • Published at 01:48 pm June 17th, 2017
CPD: New VAT law may shoot up gas, electricity prices
Centre for Policy Dialogue (CPD) has expressed apprehension that gas and electricity prices may be hiked again if the new value-added tax (VAT) law comes into effect in 2017-18 fiscal year. “If the new VAT law comes into force, 15% VAT will be added to the electricity prices which will hike the price further. Besides, the gas price will also go beyond the reach of common people,” CPD Executive Director Fahmida Khatun said at the budget dialogue in a Dhaka hotel Saturday. She also proposed the government to set the VAT rate at 12%, reports Bangla Tribune. Planning Minister AHM Mustafa Kamal, State Minister for Finance and Planning MA Mannan, CPD distinguished fellow Dr Debapriya Bhattacharya, and CDP Chairman Rehman Sobhan were present among others. 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. In 2012, the parliament passed the law that emphasised using proper accounting method for all businesses.