Consumers may see another round of hike in gas and electricity prices if the new value-added tax (VAT) law comes into effect from July 1, the country's economists warn.
"If the new VAT law comes into force, 15% VAT will be added to gas and electricity prices. It may push up the utility prices," CPD Research Fellow Towfiqul Islam Khan said at a pre-budget discussion at the NBR Headquarters on Tuesday.
He asked the National Board of Revenue not to impose the VAT on gas and electricity at the same time, rather in phases.
"The NBR has to make an advance announcement before imposing the VAT, so that the business community can make their plan," Towfiqul added.
Addressing the meeting, economist Wahiduddin Mahmud said that the proposal of imposing 15% VAT on gas and electricity was not logical.
"If the NBR imposes VAT on these utility services, they will have to make it clear to the consumers," he said.
The new law has drawn widespread criticism as it will impose a flat 15% VAT for all sectors.
In 2012, the parliament passed the law that emphasised using proper accounting method for all businesses.
Thursday, April 25, 2024
