The National Board of Revenue (NBR) has reintroduced VAT exemption on sales of computer accessories at trading stage in a bid to keep their prices affordable.
Traders will now enjoy exemption from payment of 4.0 per cent trade VAT on computer parts as per a Statutory Regulatory Order (SRO) issued by the NBR on September 03, 2018.
According to the VAT law-1991, traders are required to pay the VAT, known as trade VAT at the rate of 4.0 per cent, to the public exchequer after collecting it from consumers.
NBR officials said the VAT has been exempted following the proposals made by both the public and private sector stakeholders.
In the budget for the current fiscal year (FY), the NBR imposed trade VAT on trading stage of computer accessories.
After placing the budget proposals, Bangladesh Computer Samity demanded immediate withdrawal of the tax, fearing a substantial hike of the items.
In February 2016, the NBR granted VAT exemption on trading of computer accessories.
However, computer and its spare parts have been enjoying exemption from paying VAT at import and production stage.
Importers pay only 5.0 per cent customs duty and 5.0 per cent advance trade VAT on import of the items.
Earlier, the ICT ministry also said VAT on the sector would hamper the progress of the government's digitisation move.
