New VAT law finally takes effect

The new value added tax (VAT) law has finally taken effect from the first day of the new financial year, 2019-20.

In line with the announcement made by Finance Minister AHM Mustafa Kamal in the new budget, the law came into being today.

The government had enacted the VAT and Supplementary Duty Act 2012 replacing the VAT Act 1991 seven years ago and its implementation was delayed due to protests from business community.

The national revenue authority has projected a collection of about Tk 110 billion more in the new fiscal year under the new VAT system.