VAT ceiling raised for firms

Companies with an annual turnover of upto Tk 30 lakh will be exempted of VAT from now on, the cabinet decided today.

The amendment to 'the Value Added Tax (VAT) and Supplementary Duty Act-2012' was made in weekly cabinet meeting, held at Jatiya Sangsad Bhaban.

Before, any firm with an annual turnover of Tk 24 lakh would have got VAT exemption, Cabinet Secretary M Musharraf Hossain Bhuiyan briefed media afterwards. “Now the ceiling is Tk 30 lakh.”

This increase in a space of three years is logical, he said adding that the government took the step under demands from the small traders and shop owners.

Besides, this amendment has included some new commodities related to basic needs in the list of the items enjoying VAT exemption.

The items are mustard oil, sugar, molasses prepared from sugarcane, fertilisers and life saving drugs including cancer preventive medicines, kidney dialysis solution, contraceptives, first aid box and kit.