IMF supports Bangladeshi VAT from 2016

The International Monetary Fund (IMF) said recently that Bangladesh’s new value-added tax (VAT) will significantly increase revenue while reducing compliance costs for businesses.

top-vat-payersAn IMF mission led by Rodrigo Cubero visited Dhaka from February 25 to March 10 to conduct discussions on the fifth and sixth reviews under a three-year Extended Credit Facility (ECF) arrangement.

At the conclusion of the visit, Cubero said that “the mission welcomes the authorities’ strong commitment to launching the new VAT in July 2016.” He pointed out that VAT will significantly broaden the tax base, thereby building upon Bangladesh’s very low tax-to-gross domestic product ratio.

Cubero added that the introduction of the VAT “should be complemented by further progress in modernizing and automating tax revenue administration and by enhanced taxpayer education.”

The ECF was approved on April 11, 2012, and is worth about USD887.64m.

– by Lorys Charalambous, Tax-News.com


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