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The government plans to bring 16 additional business sectors under the Value Added Tax (VAT) system from next month, subject to the passage of the proposed national budget.
Finance Minister Amir Khasru Mahmud Chowdhury disclosed the information during the question-and-answer session in Parliament on Wednesday.
Responding to a question from BNP reserved-seat lawmaker Selina Sultana regarding VAT revenue and plans to expand the tax net, the finance minister said the government earned Tk 141,586 crore from VAT in the 2024-25 fiscal year.
He said the government has identified 16 categories of businesses that will be brought under a specific VAT regime in the upcoming fiscal year to enhance revenue collection and widen the tax base.
The sectors include grocery shops, ready-made garment and clothing stores, confectioneries, cosmetics outlets, plastic and ceramic household goods and footwear stores, hardware retailers, decorators, sellers of mobile phones and electronic appliances, paint and sanitary fitting businesses, tile shops, corrugated sheet retailers, rod and cement traders, furniture stores, beauty parlours, sweetmeat shops and restaurants.
According to the minister, the move is part of the government's broader effort to strengthen domestic revenue mobilisation and improve VAT compliance across a wider range of commercial activities.
The proposal is expected to take effect from the beginning of the next fiscal year if the national budget receives parliamentary approval.
TZ
