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EFFECT OF IMPLEMENTATION OF 15% VAT
BY
MD.MOSTAFA ASEF RAFI
ROLL NO-17221041
SECTION-A
FINANCE & BANKING
Microeconomics  1
EFFECT ON FAST FOOD RESTAURANTS
BEFORE IMPLICATION AFTER IMPLICATION
10% 25%
IMPACTS
INCREASED PRICE
CONSUMING RATE DECLINES
RESTAURANTS WILL GRADUALLY LOSE A LARGE AMOUNT OF
CUSTOMERS
ECONOMIC IMBALANCE WILL OCCUR
EFFECT ON DAY TO DAY GOODS
INCREASED PRICE
DIFFICULT TO BUY GOOD FOR THE
MIDDLE CLASS & THE POOR
PEOPLE
ECONOMIC IMBALANCE WILL
OCCUR
SMALL COTTAGE INDUSTRY WILL
FALL DOWN DUE TO LESS
DEMAND
EFFECT ON SMALL BUSINESS
As a business leader, I am very
worried and tensed about the
new VAT law.
ABDUS SALAM
PRESIDENT OF BUSINESS UNITY FORUM
The 15% rate will hurt the
business, especially SMEs.
Although the government has
offered rebates, it will be very tough
to maintain accounts for small
companies due to higher expenses.
The government is also going to
announce a budget of over
Tk400,000 crore and may impose
more taxes on business to meet the
budget earnings.
. If the 15% VAT rate is executed,
the business community will be
destroyed.
Under the previous law, we did not need
to pay VAT for, say, a loaf of bread costing
Tk100.
Now, however, we will have to pay
VAT for that as well. This system
will affect the standards of living
of poor people.
We are already facing major
competition since many products
are being imported from India,
China and Myanmar. An increased
VAT rate will be an added problem
in the existing situation
THANK YOU

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Microeconomics 1

  • 2. EFFECT OF IMPLEMENTATION OF 15% VAT BY MD.MOSTAFA ASEF RAFI ROLL NO-17221041 SECTION-A FINANCE & BANKING
  • 4. EFFECT ON FAST FOOD RESTAURANTS BEFORE IMPLICATION AFTER IMPLICATION 10% 25% IMPACTS INCREASED PRICE CONSUMING RATE DECLINES RESTAURANTS WILL GRADUALLY LOSE A LARGE AMOUNT OF CUSTOMERS ECONOMIC IMBALANCE WILL OCCUR
  • 5. EFFECT ON DAY TO DAY GOODS INCREASED PRICE DIFFICULT TO BUY GOOD FOR THE MIDDLE CLASS & THE POOR PEOPLE ECONOMIC IMBALANCE WILL OCCUR SMALL COTTAGE INDUSTRY WILL FALL DOWN DUE TO LESS DEMAND
  • 6. EFFECT ON SMALL BUSINESS As a business leader, I am very worried and tensed about the new VAT law. ABDUS SALAM PRESIDENT OF BUSINESS UNITY FORUM The 15% rate will hurt the business, especially SMEs. Although the government has offered rebates, it will be very tough to maintain accounts for small companies due to higher expenses. The government is also going to announce a budget of over Tk400,000 crore and may impose more taxes on business to meet the budget earnings. . If the 15% VAT rate is executed, the business community will be destroyed. Under the previous law, we did not need to pay VAT for, say, a loaf of bread costing Tk100. Now, however, we will have to pay VAT for that as well. This system will affect the standards of living of poor people. We are already facing major competition since many products are being imported from India, China and Myanmar. An increased VAT rate will be an added problem in the existing situation