The Bangladesh government may raise surcharge on import of mobile handsets to 2 per cent from the existing 1 per cent in the upcoming national budget for the fiscal year of 2018-2019 to encourage domestic mobile manufacturing industries.
On the other hand, surcharge at the rate of 1 per cent on mobile phone production may also be withdrawn along with providing additional tax benefits in import of raw materials for local manufacturers.
Officials of the National Board of Revenue said that supplementary duty on energy drinks at the production stage might go up to 35 per cent from the current 25 per cent in the next budget considering the health issues of the product.
Finance ministry officials said that finance minister Abul Maal Abdul Muhith might announce the decisions in his budget speech to be delivered at parliament on June 7.
Currently, a total of 30.19 per cent taxes and duties including 1 per cent surcharge are applicable for import of mobile handsets.
On the other hand, local manufacturers have to pay a total of 16 per cent taxes and duties on import of raw materials.
Currently, some local and international companies have set up factories to assemble and produce mobile handsets in the country and some others are planning handset production.
Officials said that NBR might also withdraw VAT on registration of agricultural land.
Helicopter service may see a 20-per cent supplementary duty in the next budget as the NBR considers the service as luxury one.
Agents of insurance companies may get relief from payment of VAT at the rate of 15 per cent on their commission received on premium from clients.
E-commerce service, commission on ride sharing service provided by various companies like Uber and Patho may also come under the VAT net in the next budget.
Supplementary duty on cigarette and alcohol will also be increased considering the health hazards of the products.
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