Saturday 3 June 2017

Worries there though Muhith assures

Finance Minister AMA Muhith denied that any of the tax hikes would affect the lives of the middle and lower middle class.
But, a simple analysis of his tax proposal should help clarify how much his assurance holds up.
From July 1 onward, anyone who wants to build a concrete home, either in rural or urban areas, will have to pay an extra flat 15 percent VAT on any purchases of rod and bricks.
urrently, one can buy a tonne of rod by paying Tk 900 as value added tax (VAT) and a VAT of Tk 0.22-Tk 0.32 per brick.  But in the coming months, individuals will have to pay nearly Tk 7,500 for each tonnne of rod as VAT at a price of Tk 50,000 per tonnne and more than Tk 1.0 as VAT for each piece of brick.
So if anyone wants to construct on 1,200 square feet (sft) now, using 23,000 bricks, 500 bags of cement and 5.5 tonnes of rod, they will have to pay an additional Tk 59,300 for brick and rod because of the imposition of the 15 percent VAT.
Additionally, one will be required to spend more than before to buy energy saving lamps and tube lights to light the house, pay more for furniture, plastics goods and

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