A series of workshops was held to increase awareness among business owners about food items that are not subjected to Value Added Tax (VAT).
The sessions, conducted by the National Bureau for Taxation (NBT), were aimed at “increasing the awareness of grocery stores” about the 94 basic food items zero-rated under VAT.
“The workshops held by the NBT aimed at increasing consumer confidence and transparency to ensure the correct application of VAT,” said a NBT statement.
The GDN reported on Monday that the Consumer Protection Society urged people to check their receipts after it emerged that some shops were allegedly applying VAT on wrong products.
The society said there is confusion among businesses since VAT was implemented at the rate of five per cent on goods and services from January 1.
The NBT also said it was responding to more than 1,000 calls a day through its hotline (80008001). The Industry, Commerce and Tourism Ministry received 1,130 VAT inquiries since January 1.
The ministry’s Consumer Protection Directorate recorded 224 VAT complaints during the same period, and inspected more than 430 vendors.
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In addition to zero VAT on basic food items, some construction services, education and healthcare services, medicines, local transport services and the oil and gas sector are also not subject to the tax.
Neither are the sale and lease of residential and commercial real estate, certain financial services such as loans, plane tickets or imports of personal items and gifts worth less than BD300.
All drugs are exempt from VAT except alternative medications and food supplements.
However, utility bills are subjected to VAT along with telecommunication services, clothing, hotels and restaurants, vehicles and other retail goods.
