4pc VAT for online trading: Muhith

Proposing to define online trading under the Value Added Tax (VAT) system, Finance Minister AMA Muhith today floated the proposal to impose VAT at the rate of 4 percent on this service sector.

“Trading of goods and services online is now being recognised and established as a very popular mode,” he said while presenting his budget proposal for the fiscal year 2015-2016.

Although this sector is not exempted from VAT right now, no exact definition of this service is currently there in the existing VAT system, he noted.

Regarding Online Public Procurement, Muhith said the E-GP (Electronic Government Procurement) system has been introduced to make the tendering process more transparent, accountable and competitive.

“This automation has made completion of tender/proposal evaluation and contract management, e-payment and related activities possible within a short period and in a coordinated manner,” said the finance minister.

The automation initiative has allowed more individuals/firms to participate in tender submission processes in a hassle-free environment and without fear.