Bangladesh Government to Rollback VAT and SD Increases Amid Public Outcry

In response to significant public backlash, the National Board of Revenue (NBR) of Bangladesh has decided to revise several VAT and supplementary duty (SD) increases that were imposed recently. The government will restore previous VAT and SD rates for a number of essential goods and services, including mobile phone usage, broadband internet, medicine, and restaurants.

Under the new decision, the SD on mobile phones will be reduced from 23% to 20%, and the VAT rate on broadband internet, which had been increased by 10%, will be eliminated entirely from January 9. The VAT on medicines will revert to 2.4% from 3%, benefiting both consumers and the healthcare sector. The VAT on restaurants, which surged from 5% to 15%, will also return to 5%, providing relief to restaurant owners who had threatened indefinite strikes. Similarly, the VAT rate on sweet shops and non-AC hotels will be adjusted to lower rates. 

One significant relief for students is the exemption of VAT on e-books, which will lower costs and increase access to educational resources. These changes demonstrate the government's responsiveness to public concerns while seeking a balanced approach to taxation in the face of inflation.