DHAKA: Bangladesh plans to impose Value Added Tax (VAT) on grave preservation fees as per a recent decision of the government.
Finance minister AMA Muhith recently turned down a proposal put forward by the National Board of Revenue (NBR) for VAT exemption on such fees. From now on, 15 per cent VAT will be imposed on grave preservation fees.
According to the officials, the finance minister rejected the proposal saying that as well-off people preserve graves, so there is no justification for waiving VAT on its maintenance fees.
Issue of exemption from grave preservation fees came under consideration after the revenue board received an application from former finance secretary Md Matiul Islam in this regard.
In October last year, the Dhaka North City Corporation permitted the relatives of some deceased persons for preserving the graves for 25 years on the condition of paying 15 per cent VAT on the fee at Tk 1.5 million.
However, grave preservation fee for Uttara graveyard is Tk 1.1 million for the same time excluding the VAT.
In his application, Matiul Islam, also father-in-law of Munaim, requested the revenue board for exemption, terming it taxation on deceased person.
