DHAKA: International Monetary Fund (IMF) mission led by Rodrigo Cubero said during a meeting in Dhaka that IMF welcomes the Bangladesh’s strong commitment to launching the new value-added tax (VAT) in July 2016.
Cubero said that Bangladesh’s new value-added tax (VAT) will increase revenue while reducing costs for businesses.
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.
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.
