Dhaka, Jan 10 (V7N) — Amid rising inflation, the National Board of Revenue (NBR) has introduced significant hikes in VAT and supplementary duties on a wide range of goods and services, including medicines, clothing, foreign fruits, and mobile recharges. The changes, implemented through an ordinance in the absence of parliament, are expected to strain the budgets of fixed-income households.

The revised VAT structure includes:

Medicines: VAT increased from 2.4% to 3%.

Dining: VAT at AC restaurants raised to 15% from 5%.

Daily Necessities: Tripled VAT on items like biscuits, cakes, pickles, and tomato ketchup.

Utilities: LP gas now subject to increased VAT in two stages.

Other Goods: Significant hikes in VAT on electrical transformers, plastic spectacle frames, tissues, sunglasses, and sweets.

Additionally, VAT has risen on 14 services, including automobile workshops, printing houses, tailoring shops, and cinema halls, by 5%.

Imported Goods: Increased duties on fresh and dried fruits, juices, soaps, and drinks, with some rates jumping from 5% to 40%.

Cigarettes: Supplementary duty now at 67%, raising cigarette prices.

Alcohol: A 10% increase in duty on alcoholic beverages in hotels and restaurants.

Mobile Services: Supplementary duty raised by 3%, increasing costs for calls and internet usage.

Air Travel: Excise duty now ranges from Tk 200 to Tk 1,000, depending on the destination.

Former Customs Commissioner Abdul Kafi criticized the move, stating, "With inflation at around 13%, this VAT hike exceeds people's purchasing power. It will strain consumers and disrupt the market."

Analysts predict that the increased taxes will exacerbate the cost-of

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