NBR Revises VAT Hikes: Reduced Rates for Internet, Restaurants, Clothing, and More
Image credits: Prothom Alo
The National Board of Revenue (NBR) has rolled back VAT hikes in key sectors following public criticism and pressure from businesses. The supplementary duty on mobile phone services and internet use has been reduced from 23% to the previous 20%. Restaurant food bills will now face 5% VAT instead of the recently raised 15%. Similarly, VAT on clothing, sweets, and non-AC hotels has been cut to 10%. The VAT hikes, introduced mid-fiscal year on January 9, sparked protests, including a human chain by restaurant owners. The sudden increases had caused concerns about inflation and economic uncertainty. The NBR also withdrew extra charges on Hajj air tickets and reduced VAT on medicine, garments, and workshops. Officials stated these changes aim to balance revenue needs with easing burdens on low- and middle-income people.
