Dhaka, Jan 22 (V7N) — In a move to ease the financial burden on citizens and businesses, the National Board of Revenue (NBR) has announced the withdrawal of additional VAT and customs duties on several key products and services. The decision, effective immediately, aims to make essential services and goods more affordable.

A notification issued by the NBR on Wednesday detailed the changes:

1. Medicines: The VAT on the pharmaceutical industry, which had been increased at the business level, has been rolled back to the previous rate of 2.4%. This measure is expected to make medical services more accessible to the public.

2. Digital Services: To support the ongoing digitalization efforts, supplementary duties on mobile phone SIM cards, RAM cards, and ISP services have been removed.

3. Restaurants: To ensure affordability in dining, VAT has been waived for all restaurants except those in three-star, four-star, and five-star hotels. Additionally, the VAT rate for non-AC hotels, sweet shops, and the marketing of own-brand ready-made garments has been reduced from 15% to 10%.

4. Automobile and Clothing Sectors: The additional VAT imposed on automobile garages, workshops, and non-branded ready-made clothing has been entirely withdrawn.

This decision follows the backlash from traders and businesses after VAT and customs duties were increased on over 100 products earlier this month. The NBR’s latest move reflects an effort to balance revenue collection with public and industry demands.

Officials believe the revised VAT structure will benefit both consumers and businesses, fostering economic growth and supporting the country’s digitalization and healthcare initiatives.

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