Finance Minister AMA Muhith said Monday that a single rate of VAT (value added tax) will come into effect from the first day of fiscal year 2016-17.
The VAT Act-2012 will be made effective on that day also.
The minister's comment came a day after the country's business community demanded introduction of multiple rates of VAT as practiced in many countries.
Briefing newsmen after a meeting with visiting delegation of the IMF (International Monetary Fund) at his Secretariat office, Mr Muhith also said the multilateral lending agency has agreed to release the last two instalments of extended credit facility (ECF) worth US$280 million by June this year.
The IMF delegation, led by Rodrigo Cubero, deputy division chief of Asia and the Pacific Department, during its two-hour long meeting with the minister, also vetted a proposal regarding raising of the ceiling of value added tax (VAT)-free annual turnover from Tk 2.4 million to over Tk 3.0 million for small shop-owners.
Mr Muhith avoided an answer to a query about the single VAT rate, saying "You will see it (the rate) in the next budget proposal," he said.
The minister claimed that the review committee of VAT Act-2012 only mentioned about existence of multiple rates of VAT in many countries but they did not specifically suggested introduction of such rates here, he said replying to a query.
"Yes, on Sunday the business leaders discussed the issue, but I have changed my mind on multiple VAT rates," Mr Muhith added.
When his attention was drawn to an allegation by businessmen that the IMF has been illegally intervening in Bangladesh's tax revenue system violating an agreement it signed in 1995 with the World Trade Organisation (WTO), the minister answered in the negative.
"We have a programme with the IMF. We agreed to follow some advices while signing the agreement. We have to follow those. The IMF's capacity is restricted only to giving advice, nothing else," Mr Muhith said.
He said Bangladesh has been following the VAT Act, which is nearly 60 years old. It was first introduced in France in 1950s.
syful-islam@outlook.com
