The National Board of Revenue has lifted value-added tax on sales of computer accessories to keep the items affordable to consumers.
NBR on September 3 issued a statutory regulatory order (SRO), signed by its chairman Md Mosharraf Hossain Bhuiyan, giving exemption to traders from payment of VAT on computer parts.
Traders pay the VAT, known as trade VAT at the rate of 4 per cent, after collecting from consumers.
Officials said that public and private stakeholders including ICT ministry and Bangladesh Computer Samity had been demanding withdrawal of VAT on the sector.
The rate of VAT, however, is 15 per cent if traders claim rebate on previously paid VAT.
Computer parts had been enjoying VAT exemption until June this year when NBR imposed VAT on the sector through the budgetary
measures for the current fiscal year 2018-2109.
NBR in February 2016 gave VAT exemption on trading of computer accessories.
On the other hand, computer and spares have been enjoying exemption from paying VAT at import and production stages. Importers pay only 5 per cent customs duty and 5 per cent advance trade VAT on the items.
Bangladesh Computer Samity immediately after the announcement of budget demanded continuation of exemption of VAT on computer accessories.
They claimed that prices of computer parts would go up due to imposition of VAT.
ICT ministry also said that VAT on the sector would hamper the progress of the government’s digitisation move.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Tax