Bangladesh to raise VAT on branded clothing

The products and services include posh garment outlets, powdered milk, biscuits, juice, mattresses, transformers, tissue papers, factory-manufactured pickles, mobile bills, internet bills as well as eateries offering services rated four-star and above, branded sweet stores, air fare and hotel rents.

The government has approved the hikes to bolster state revenues and not to meet the demands of the International Monetary Fund (IMF), he said.

The VAT for branded apparel outlets would rise from 7 per cent to 15 per cent.

In December, IMF demanded an overall VAT hike to 15 per cent in the country to release the fourth tranche of a $4.7 billion package.

ALCHEMPro News Desk (DS)