5pc VAT on e-commerce

Finance Minister AMA Muhith on Thursday suggested to impose VAT on e-commerce business as the platform rising popularity day by day. During his budget speech in the Parliament for fiscal 2018-19, Minister Muhith proposed to impose 5 per cent VAT on all e-commerce, muhith-3including those using Facebook for sales, reports UNB.

However, he did not specify how the VAT to be imposed, but what he spoke of is a definition of ‘Virtual Business’ which will serve to the purpose of bringing e-commerce under VAT.

“The use of internet or social media has increased for buying and selling of goods or services. Therefore, the government wants to impose tax on such businesses,” said the minister.

Earlier in 2015, he tried to impose VAT at 4 per cent on the same kind of business but failed to do so amid pressure from the stakeholders.