Wednesday, October 18, 2017

State Minister for power and energy demands withdrawal of 15% VAT on housing sector

  • Senior Correspondent,
    Published: 2017-06-19 19:36:56 BdST


State Minister for Power, Energy and Mineral Resources Nasrul Hamid Bipu has demanded a reversal of proposed 15 percent VAT on housing sector claiming “it will push power prices up.”

“The 15 percent VAT, if imposed on the housing sector, will push up electricity bills for the households by seven percent,” he said during a discussion on budget FY2018 in parliament on Monday.

Finance Minister AMA Muhith was not present in Parliament at that time.

The state minister has previously served as the president of Real Estate Housing Association of Bangladesh or REHAB. He and his family own the Hamid Real Estate Construction Ltd.

The state minister ruled out any possibility of a 'quick fix' to the on-going power crisis saying that "billions of dollars were needed to ensure uninterrupted power supply."

“However, we will be able to overcome the crisis in between September and March,” he said.

The state minister also called for the withdrawal of Value-Added Tax and supplementary taxes on Liquefied Natural Gas or LNG and Liquefied Petroleum Gas or LPG, proposed in the budget.

“This will push up gas prices to such an extent that people will no longer be able to afford it,” he said.