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Thread: Bangladesh lifts VAT on computers, spares

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    Default Bangladesh lifts VAT on computers, spares

    The government has lifted Value Added Tax (VAT) on computers and spare parts.

    National Board of Revenue (NBR) Chairman Nojibur Rahman told bdnews24.com a notice lifting the VAT with effect from Feb 15 has been issued by the NBR.

    Bangladesh had earlier lifted duty on import of computer and spares in 1998-99.

    Former chief of Bangladesh Computer Society and IT specialist Mustafa Jabbar told bdnews24.com the traders had to pay 4 percent VAT in advance while importing computers and spares.

    The final tax burden came to 6 percent , Jabbar said.

    “There has been much resentment among the traders when the NBR slapped the 15 percent VAT at the retail level on computers and spares,” he said.

    He said he met Finance Minister AMA Muhith several days ago and urged him to lift VAT on computers and spares.

    “The finance minister at once called up the NBR chairman and asked him to listen to me,” Jabbar said.

    “Now I see VAT at every level has been lifted. It’s an extraordinary move,” he added.

    He described it as a milestone in building ‘Digital Bangladesh’.

    There was no specific rate for VAT on computer products.

    The traders have been paying Tk 11,000 ‘package VAT’ annually.

    In August-September last year, the NBR asked the computer retailers to pay 15 percent VAT.

    The traders had been demanding withdrawal of the VAT arguing that would hamper achieving the goals of ‘Digital Bangladesh’.

    Jabbar said the NBR announcement to lift VAT on computer and spares means the traders will not have to pay either the ‘package VAT’ or the 15 percent VAT on retail sale.

    http://m.bdnews24.com/en/detail/business/1108137

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    Is this for real? Will it be taking affect on every market here now?
    Last edited by Trave160; February 21st, 2016 at 20:13.

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    Default

    Should significantly lower retail prices of computer accessories.

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    Awesome! Cheaper monitors a possibility?

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    Quote Originally Posted by UzumakiShinji View Post
    Awesome! Cheaper monitors a possibility?
    only up to 22" monitor.

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    Quote Originally Posted by UzumakiShinji View Post
    Awesome! Cheaper monitors a possibility?
    nope. medium and large panels still have it.

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    Quote Originally Posted by UzumakiShinji View Post
    Awesome! Cheaper monitors a possibility?
    i think the govt had listed the big display vat as a luxury tax not computer tax....


    am i right? to expters

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    Quote Originally Posted by furiousTaher View Post
    i think the govt had listed the big display vat as a luxury tax not computer tax....


    Damn :/ 22" is such a small limit. t.t


    When do you guys reckon the prices will drop in the bd market?

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    Quote Originally Posted by UzumakiShinji View Post
    Damn :/ 22" is such a small limit. t.t


    When do you guys reckon the prices will drop in the bd market?
    it won't. anything more than 22' is considered luxury by the government and thus different tax laws apply to them. no point buying it from abroad too, since you won't be able to hide it at the airport, and they'll make you pay the vat for it upon arrival.

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    Quote Originally Posted by Ehsas View Post
    it won't. anything more than 22' is considered luxury by the government and thus different tax laws apply to them. no point buying it from abroad too, since you won't be able to hide it at the airport, and they'll make you pay the vat for it upon arrival.
    Ahh, well the prices for the other components should drop right?

    Anyone have a clue how long might that take?

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    Quote Originally Posted by UzumakiShinji View Post
    Ahh, well the prices for the other components should drop right?

    Anyone have a clue how long might that take?
    Not sure how long, but the price drops will not be significant at all.. the duty charged wasn't really that high from the beginning. so it'll either be very small or none at all.

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    Quote Originally Posted by UzumakiShinji View Post
    Awesome! Cheaper monitors a possibility?
    Monitors over 22" is taxed as TV.

    - - - Updated - - -

    How long will it take for the new prices to take effect? @VANGUARD ?

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    Quote Originally Posted by Shawon191 View Post
    Monitors over 22" is taxed as TV.

    - - - Updated - - -

    How long will it take for the new prices to take effect? @VANGUARD ?
    it will not take any effect.

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    So ultimately it's the store owners that'll make more money

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    Is this because of the fact that they've already stocked products and they can't reduce their prices for the moment or business companies like to take advantage of this while people are already aware?

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    Quote Originally Posted by VANGUARD View Post
    it will not take any effect.
    Like ever?

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    :3 if only i get to buy polaris gpus at correct price without vat .............

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    Quote Originally Posted by UzumakiShinji View Post
    So ultimately it's the store owners that'll make more money
    Exactly

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