No VAT on online shopping: NBR

The government has reversed a plan to impose 5 percent VAT on online shopping.

The VAT on online shopping as announced in the new budget was a printing error, according to the National Board of Revenue.

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“It was printed mistakenly. We dropped the decision,” said Md Mosharraf Hossain Bhuiyan, chairman of the NBR, responding to a question at a post-budget news conference in Dhaka on Friday.

According to Finance Minister AMA Muhith’s budget speech delivered on Thursday, 5 percent VAT was levied on online shopping.

Muhith has also proposed 5 percent VAT on digital ride-sharing service providers such as Uber and Pathao, which promoted criticism from users.

Weather it will put pressure on the middle income class, Muhith angrily said: “Poverty is declining at a faster rate in Bangladesh. People are now capable of paying taxes.”

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