The National Board of Revenue revealed through its new directive that customers must no longer pay separate Value Added Tax at super shops. Products displayed for sale across retail storefronts now include VAT as part of the price customers finally pay.
The VAT department of the NBR released this announcement through a notification issued on 20 February. A decision resulted from extensive discussions held by NBR authorities together with super shop owners throughout their opposition toward earlier VAT structure requirements.
Background and History
Before the recent change super shops operated with different VAT rates between 1.5% and 5% in their structure. Government officials implemented a 7.5% VAT rate during budget year 2023-24 but this action received vehement resistance from owners operating chain super shops. Shops who operated at these location pointed out that VAT’s inconsistent application generated unclear situations for enterprises and their clients.
Super shops have been requesting an open and consistent pricing approach for numerous years because consumers avoided their stores and sales decreased due to separate calculation of VAT. Business owners demanded a change to retail prices in Bangladesh to match the international standard of including taxes in the final store price.
The new decision matches pricing structures that exist in other nations and it will provide shoppers with clear pricing transparency and an improved shopping process. The decision will improve consumer confidence while simplifying payments in all Bangladesh super shops nationwide.
Verified Information and Industry Response
The Bangladesh Supermarkets Owners’ Association supports this decision since it presents mutual advantages to customers and merchants. An official source at NBR explained that the authority instituted this regulation for clear prices which would result in increased taxation efficacy.
Source: The Business Standard
