Tofail hints at 12% VAT rate

Commerce Minister Tofail Ahmed has hinted that the government may set a flat 12% value-added tax (VAT) rate in the upcoming fiscal year. “If the VAT rate is set at 12%, the revenue generated from VAT will be reduced to Tk24,000 crore,” Tofail told reporters after a meeting at his office with Hajah Masurai Binti Haji Masri , high commissioner of Brunei Darussalam to Bangladesh, on Tuesday. Earlier in the month, Finance Minister AMA Muhith also hinted at a cut in the VAT rate for businesses. At a discussion on May 2, Muhith said: “We will give you a more comfortable rate.” Amid a wide range of criticism and opposition from representatives of the business sector, the VAT Act 2012 will be effective from July 1. The new law had proposed a uniform 15% VAT for almost all products.