VAT exemption to expand for businesses

Businesses with annual turnover of up to Tk 30 lakh are likely to be excused from paying value-added tax, after the government caved in to their demands and raised the exemption ceiling from Tk 24 lakh.

The provision is part of the new Value Added Tax and Supplementary Duty Act, which will take effect in July 2016.

The decision came at the weekly meeting of the cabinet yesterday.

Also, some new commodities, deemed to be basic needs, were included in the list of items enjoying VAT exemption.

The items are: mustard oil, sugar, molasses prepared from sugar cane, fertilisers, lifesaving drugs, kidney dialysis solution, contraceptives and first-aid kit.

The cabinet also gave its final nod to the Court Fees (Amendment) Act, 2015 pending vetting.

When the act is implemented court fees can be deposited online through e-payment.

Cabinet Secretary Musharraf Hossain Bhuiyan said the amendment will prevent fraud and reduce people's sufferings.

The amendment stipulates a Tk 50,000 fine and six months' imprisonment for violating the rules and selling stamps without permission.

The existing punishment is Tk 500 fine and six-month imprisonment.

Besides, the cabinet also gave approval in principle to the draft of the Organ Transplantation (Amendment) Act, 2015, aimed at making the existing law more effective in light of the High Court directives in 2011 and facilitate people to take advantage of the advanced medical technology.

The meeting also cleared the draft of the Cadet College (Amendment) Act, 2015.