NBR
Internet tax to be reduced
The National Board of Revenue (NBR) has decided to reduce the 23 percent supplementary tax on mobile phone calls, internet use and IT services and restore the previous 20 percent tax after a long-standing protest by internet service providers.
Excessive foreign debt erodes financial independence
In the 1970s, an American development economist visited Bangladesh. At one point, he gave a speech to the faculty members of Dhaka University. The economics department’s professors were notably present at this event. During his address, the American economist presented his views on why Bangladesh’s economic development was not progressing to the desired level. The professors in attendance listened intently to his words. At that moment, a young economics professor from Dhaka University stood up and said to the American economist, "The reason we are unable to achieve the desired level of development is because you are intervening in our economy in various ways." After a brief pause, the American economist replied to the young professor, saying, "If 80 percent of the funds for your country's development activities come from us, whose economy is it? If you were able to finance your development from domestic sources, we would not need to offer any advice." Hearing this, the young professor remained silent and sat down.
Why sudden VAT increase amid high inflation?
For the past two years, the people of the country have been struggling against rampant high inflation. According to the Bangladesh Bureau of Statistics (BBS), the average inflation last year was 10.34 per cent. Although the overall inflation decreased slightly in September, food inflation remained above 10 per cent. BBS data shows that in December, food inflation was 12.92 per cent, while non-food inflation was 9.26 per cent.
Govt raises VAT, duties on over 100 items
Amid high inflation, the government has raised taxes, duties, and VAT on over a hundred goods and services, including essential items such as medicines, LPG, and mobile SIM cards.
Why sudden VAT hike amid soaring prices?
While vegetable prices have started to decrease slightly in the middle of winter, the prices of essential goods are still out of control. The prices of rice, lentils, and oil are beyond reach for most people. Recently, the price of chicken also increased. Amid all this, there is bad news for consumers at the beginning of the new year: VAT has been increased on 65 goods and services. This sudden VAT hike has been imposed under pressure from the IMF. Moreover, midway through the current fiscal year (2024-25), the government has taken the step of increasing VAT, supplementary duties, and other taxes to boost revenue. Initially, 15 per cent VAT will be imposed on 65 types of goods and services. This news is concerning for ordinary people who are already suffering from the pressure of inflation.
MPs' duty-free car imports may face cancellation
After being elected as Members of Parliament, individuals have traditionally enjoyed the privilege of importing cars from overseas without incurring any duty. However, the National Board of Revenue (NBR) is now considering cancelling this privilege for MPs. Concerned sources have indicated that there are plans to impose a duty ranging from 5 to 25 percent on the importation of MPs' cars, leading to the abandonment of the duty-free system.
“No alternative to automation to increase revenue”
State Minister for Finance Waseqa Ayesha Khan has commented that there is no alternative to automation to increase revenue.
NBR faces IMF pressure to withdraw ICT tax exemption
The country’s income from the ICT sector at present is $1.9 billion. The sector has generated 20 lakh job opportunities in addition to 6.5 lakh freelancers. Start-up investment now stands at $ 5,000 million. All these achievements have been made due to the government’s business-friendly policies in this sector.
No tax on offshore banking profit
The offshore banking unit has exempted from tax on the profit or interest earned by deposit.
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