Bangladesh lifts VAT on computers, spares

  • Abdur Rahim Harmachi,
    Published: 2016-02-21 01:02:22 BdST

The government has lifted Value Added Tax (VAT) on computers and spare parts.

National Board of Revenue (NBR) Chairman Nojibur Rahman told a notice lifting the VAT with effect from Feb 15 has been issued by the NBR.

Bangladesh had earlier lifted duty on import of computer and spares in 1998-99.

Former chief of Bangladesh Computer Society and IT specialist Mustafa Jabbar told the traders had to pay 4 percent VAT in advance while importing computers and spares.

The final tax burden came to 6 percent ,  Jabbar said.

“There has been much resentment among the traders when the NBR slapped the 15 percent VAT at the retail level on computers and spares,” he said.

He said he met Finance Minister AMA Muhith several days ago and urged him to lift VAT on computers and spares.

“The finance minister at once called up the NBR chairman and asked him to listen to me,” Jabbar said.

“Now I see VAT at every level has been lifted. It’s an extraordinary move,” he added.

He described it as a milestone in building ‘Digital Bangladesh’.

There was no specific rate for VAT on computer products.

The traders have been paying Tk 11,000 ‘package VAT’ annually.

In August-September last year, the NBR asked the computer retailers to pay 15 percent VAT.

The traders had been demanding withdrawal of the VAT arguing that would hamper achieving the goals of ‘Digital Bangladesh’.

Jabbar said the NBR announcement to lift VAT on computer and spares means the traders will not have to pay either the ‘package VAT’ or the 15 percent VAT on retail sale.