Presentation on value added tax
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Value Added Tax (VAT) is an indirect tax levied on the sale of goods and services in Bangladesh. The standard VAT rate in Bangladesh is 15% and there are some preferential rates that range from 1.5% to 9% for certain goods and services. VAT collection in Bangladesh has steadily increased over the years, growing from 20,116 crore in FY2008-09 to 40,466 crore in FY2012-13, comprising around 35% of total tax revenue on average during that period.
Presentation on value added tax
- 3. What is VAT Value Added Tax, popularly known as VAT, is a special type of indirect tax in which a sum of money is levied at a particular stage in the sale of a product or service. Value Added Tax a tax on which the value of an article has been increase stage of its production. -The Oxford Dictionary 3
- 4. VAT Rate Standard Rate of VAT in Bangladesh is 15%. Other than standard Rate there are some truncated value based preferential rates on some services. At present the following preferential rates are applicable by Statutory Rules and Order 1.5%, 2%, 3%, 4%, 4.5%, 5%, 5.5%, 6%, 9%. 4
- 5. FY2008-09 FY2009-10 FY2010-11 FY2011-12 FY2012-13 Total Revenue 69180 79484 95188 114885 139670 Total Tax Revenue 55526 63956 79052 96285 116824 Value Added Tax 20116 22795 28274 34304 40466 % of VAT to Tax revenue 36.23 35.64 35.77 35.63 34.64 VAT Collection Trends in Bangladesh All amount shows in crore 5
- 6. 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 6
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