Monday, October 22, 2018, 08:23:14 AM

No VAT on remittances: NBR

Business Desk |
Update: 2018-06-13 10:42:14 AM
No VAT on remittances: NBR

DHAKA: The government has not imposed any Value Added Tax (VAT) on remittance in the proposed budget for 2018-19 fiscal year, said an official of the National Board of Revenue (NBR).

NBR senior information officer Sayed A. Mumen said it in a statement released on Wednesday (June 13).

According to the statement, NBR said it is being spread out on social media that VAT has been imposed on the remittance in the 2018-19 fiscal year. It’s completely false and rumour.

NBR believes that it is part of a planned effort to promote illegal money transferring method like ‘Hundi’ and to undermine legal remittance flow by spreading confusion among the expatriates over the issue. 

The state minister laid emphasis on disseminating correct information among the expatriates instead of creating any confusion with false news.

Earlier, a video went viral in which it was seen a Bangladeshi, who claimed to be from Malaysia, sharply criticized Finance Minister AMA Muhith for what he says imposing so-called tax and VAT on the income of expatriates.

VAT is imposed on supply of goods or services. Expatriates earn foreign currencies by providing services through hard labor. According to sub-section 2(a) and Section-3 of Value Added Tax Act 1991, such services are considered as export and excluded from VAT. Expatriates can send any amount of foreign currencies in proper legal banking channels, the statement added.

In the statement, NBR also warned about remittance sent thru illegal means like Hundi saying that such currencies don’t play a role in the national economy.      

BDST: 2020 HRS, JUNE 13, 2018

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