NBR halves VAT on biscuits

The National Board of Revenue (NBR) has reduced the VAT on both hand-made and machine-made biscuits from 15% to 7.5%.

The reduction was announced in a notification signed by NBR Chairman Md. Abdur Rahman Khan on Wednesday (February 19).

In January, the government increased VAT and supplementary duties on over a hundred goods and services, including bakery products, biscuits, and cakes, raising VAT from 5% to 15%.

The VAT imposition on biscuits received criticism, and businesses requested a reduction. Following two rounds of discussions with the NBR, the biscuit manufacturers' association was assured that the additional VAT would be lowered.

On February 6, the Bangladesh Biscuit and Bread Association held a second meeting with the NBR, urging the removal of newly imposed VAT and duties on processed food products.