Staff Reporter :
A total of 1,033 essential commodities, including locally produced primary food items, agriculture, livestock and fishing products and life-saving drugs have been exempted from value-added tax (VAT).
“I propose to retain the existing VAT exemptions on 536 primary food items such as rice, lentils, fish, meat, vegetables, sugar, honey, puffed rice, maize, wheat, liquid milk, barley and salt,” said Finance Minister AMA Muhith in the Parliament during his speech on the proposed budget for the 2017-18 fiscal year on Thursday.
“In addition, I propose to exempt 93 life-saving drugs from VAT,” the minister said.
Public transport services, public health and medical services, education and training services will also enjoy VAT exemption, he said.
“I also propose VAT exemption for 404 items in the agriculture, livestock and fishing sectors,” he added.
Moreover, non-commercial activities, charitable and cultural organisations will also enjoy VAT exemption facilities, AMA Muhith said.
“As a result of these exemptions, the market prices of daily essentials are expected to go down. Prices should not increase under any circumstances,” he said.
The Value-Added Tax and the Supplementary Duty Act, 2012 will come into effect from July 1. The finance minister has proposed flat rate of VAT at 15 percent on almost everything.
A total of 1,033 essential commodities, including locally produced primary food items, agriculture, livestock and fishing products and life-saving drugs have been exempted from value-added tax (VAT).
“I propose to retain the existing VAT exemptions on 536 primary food items such as rice, lentils, fish, meat, vegetables, sugar, honey, puffed rice, maize, wheat, liquid milk, barley and salt,” said Finance Minister AMA Muhith in the Parliament during his speech on the proposed budget for the 2017-18 fiscal year on Thursday.
“In addition, I propose to exempt 93 life-saving drugs from VAT,” the minister said.
Public transport services, public health and medical services, education and training services will also enjoy VAT exemption, he said.
“I also propose VAT exemption for 404 items in the agriculture, livestock and fishing sectors,” he added.
Moreover, non-commercial activities, charitable and cultural organisations will also enjoy VAT exemption facilities, AMA Muhith said.
“As a result of these exemptions, the market prices of daily essentials are expected to go down. Prices should not increase under any circumstances,” he said.
The Value-Added Tax and the Supplementary Duty Act, 2012 will come into effect from July 1. The finance minister has proposed flat rate of VAT at 15 percent on almost everything.
