Value Added Tax >> Export
STRUCTURE, ADMINISTRATION OF VAT IN BANGLADESH WITH SPECIAL REFERENCE TO EVASION CONTROL AND MEASUREMENT OF VAT POTENTIAL
Date Added: 2011-04-28Value Added Tax (VAT) was introduced in Bangladesh from the 1st of July, 1991. This tax is levied, as a substitute for excise duty, on most of the goods and services which are now subjected to excise duty. It may be mentioned here, at the import stage, sales tax was abolished and VAT levied and collected in its place. However, for some initial administrative difficulties, a few selected commodities, such as, tobacco products, natural gas, petroleum products, etc., and also a few services remained within the purview of excise duty for some time. Now they are under VAT. Value Added Tax in Bangladesh is mainly confined to the import and manufacturing stages. In most of the countries of the world where there is VAT it is compulsory in both wholesale and retail distribution of goods and services. At present the Turn Over Tax and the Cottage Industry exemptions are of the same limit. Cottage industries upto a turnover of Tk. 15 lakh are exempt. Small industries with a turnover of Tk. 15 lakh pay tax at the rate of 2%. There is a Turn Over Tax Determination Commission, which determines on a yearly basis the minimum tax payable by specific units and settles disputes between turnover units and VAT offices.