The National Board of Revenue has re-determined the VAT, supplementary duty, and excise duty rates of some goods and services in accordance with the 'Value Added Tax and Supplementary Duty (Amendment) Ordinance 2025' to strengthen Bangladesh's own financial base.
On Wednesday (January 22), four notifications were issued reducing the VAT deduction rate and supplementary duty.
According to the notification, VAT has been withdrawn from four sectors - medicine, mobile phone and ISP services, restaurants, motor vehicle garages and workshops.
In the case of the pharmaceutical industry, it has been mentioned that in order to make medical services more accessible to all sections of the population, the increased VAT rate on the pharmaceutical industry at the business level has been completely withdrawn and the previous rate of 2.4% has been maintained.
In the case of mobile phone and IAP services, it has been mentioned that in order to continue the digitization activities of the country, the increased supplementary duty on services provided through the use of mobile phone SIM cards and the newly imposed supplementary duty on ISP services have been completely withdrawn.
In the case of restaurants, the additional VAT imposed on restaurants other than three-star, four-star, and five-star has been completely withdrawn. As a result, the cost of food in restaurants will not increase.
The increased VAT has also been withdrawn in the case of motor vehicle garages and workshops.