Bangladesh, June 19 -- The government has finally notified that the new VAT law (VAT and Supplementary Duty Act, 2012 and Rules 2016) will go into effect from July 01, 2019. Consequent upon this, all rules, orders, statutory regulatory orders (SRO) and notices issued under the erstwhile VAT Act 1991 and Rules thereof have been rescinded with effect from that date.
As anticipated, in addition to the present VAT rate of 15 per cent, reduced VAT rates, with no input tax credit, at 05 per cent, 7.50 per cent and 10 per cent have also been introduced on the supply of specific goods and services. However, in order to give relief to the local traders, VAT rate of 05 per cent is continuing in respect of local supply of all goods, even when such go...