NBR to enact new VAT law from July

National Board of Revenue (NBR) Chairman Nojibur Rahman today said NBR will enact a new VAT law from July next year to streamline the VAT system.

He added small traders have been paying Value Added Tax (VAT) in a package system for a long time but it has no legal basis.

"Package VAT is an ambiguous idea, it has no legal basis. It exists on verbal calculation," said the NBR chairman while addressing at a press conference in Dhaka today.

In the budget, the VAT has been fixed at Tk 28,000 in the city corporation areas and a section of small traders are opposing it, he added.

He said talks are going on with small traders to find out a solution. Traders whose annual sales turnover is above Tk 3,00,000 will have to pay VAT as per the new VAT law, he added.