Sweets makers seek 5.0pc VAT

Local sweets makers have sought withdrawal of the proposed 10 per cent value-added tax (VAT) on the sale of sweets items in the greater interest of the sector.

They have suggested imposition of 5.0-per cent VAT instead of 10 per cent.

The Bangladesh Sweet Manufacturers Association (BSMA) has recently requested the finance ministry to make a move to this end.

The government earlier imposed 15-per cent VAT on the sale of different sweets items. Following VAT imposition, the association formed a human chain demanding withdrawal of the proposed VAT rate.

Later, the VAT rate for sweet shops has been reduced to 10 per cent, which is still higher by 2.5 per cent than the previous rate of 7.5 per cent.

When contacted, BSMA secretary general Nani Gopal Ghosh said, "If the government implements our proposal, both traders and consumers will encourage giving VAT, thus increasing the government's revenue earnings manifold."

The then government imposed 15-per cent VAT on sales of sweet items in fiscal year 2023-24. After protesting against the proposal by sector insiders, the government reduced the rate to 7.5 per cent, he explained.

Mr Ghosh believes the volume of revenue earnings of the government will increase substantially if 5.0 per cent VAT is imposed instead of 10 per cent.

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