Finance minister in press conference
The rate will be 15 per cent: Muhith
Finance minister AMA on Saturday put away from his previous promise for reducing the proposed rate of value added tax in the upcoming national to be declared on June 1.
‘The rate will be 15 per cent,’ he said while talking with some selected journalists at his secretariat office.
He noted that there would trouble in the whole system if the VAT is reduced from 15 per cent.
Amid demands by the businessmen Muhith committed to reduce the rate of VAT from 15 per cent on a number of occasions during past one month while commerce minister Tofail Ahmed hinted that the rate would 12 per cent.
The finance minister expressed satisfaction that he could finally start the implementation of the new VAT law from July 1 after it was passed in parliaments in 2012.
Businessmen have been opposing the new VAT law and the proposed 15 per cent rate for long.
They have already demanded for lowering the rate at 10 per cent saying the rate would affect the business activities and cause the price hike of essential commodities.
Muhith dismissed the possibility of any price of hike of commodities.
He also ruled out any chance of ‘uproar’ against the new VAT law.