Grocery store, beauty parlour, among 16 businesses, to come under VAT net: Finance Minister

If the proposed budget is passed, 16 types of businesses including grocery stores and beauty parlors will come under the scope of Value Added Tax (VAT) from next month, said Finance Minister Amir Khosru Mahmud Chowdhury.

He made the disclosure during a question-and-answer session in Parliament on Wednesday chaired by Speaker Hafiz Uddin Ahmed.

BNP MP Selina Sultana from the reserved women's seat asked several questions in the parliament. These include what was the government's revenue from VAT in the last fiscal year? Is there a plan to bring any new institution or source under the net of VAT? If so, what is the list of possible institutions or sources?

Replying to the questions, the Finance Minister said that the government's income from VAT in the 2024-25 fiscal year was Tk1,41,586 crore.

The minister said that the government has plans to bring 16 types of business sectors under the net of VAT in the next fiscal year. The business sectors are: 1. Grocery stores; 2. Ready-made garment or cloth stores; 3. Confectionery; 4. Cosmetics shop; 5. Plastic ceramic household goods and shoe shop; 6. Hardware product seller; 7. Decorators; 8. Mobile phone, AC, fridge, oven and other electronic product seller; 9. Paint and hardware and sanitary and fittings; 10. Tile shop; 11. Corrugated shop; 12. Rod and cement; 13. Furniture shop; 14. Beauty parlour; 15. Sweet shop and 16. Restaurant.