No additional VAT to be paid on purchases at super shops

From now on, no additional 5 percent value added tax (VAT) will have to be paid on purchases at super shops. Consumers will be able to buy products at the MRP price at super shops.

This information was revealed by the National Board of Revenue (NBR) on Thursday (February 20).

However, even if there is no additional VAT on purchases at super shops, shop owners will have to buy products from organisations that issue VAT invoices. Super shop owners will pay VAT on their part of the value added. They will take VAT rebates from the previous stage. Super shop owners will not pay VAT on products that are not subject to VAT at the production stage.

Chain super shop owners have been objecting to this for some time. They have also held discussions with officials of the NBR's VAT department on several occasions.

Mentionable, the NBR receives more than Tk 150 crore in VAT from the super shop sector every year. The super shop owners claim that if VAT is included in the retail price and if the sales are done properly and according to the rules, it would be possible to collect as much as Tk 4,000 crore in VAT from the super shops.