NBR to phase out truncated-base VAT within two years

The tax authority is in a process to gradually phase out the truncated-base of Value Added Tax (VAT) within the next two years before implementation of the new VAT and Supplementary Duty (SD) act-2012 from July 1, 2017.

The process has been initiated following a recent instruction of Finance Minister AMA Muhith to the National Board of Revenue (NBR).

The truncated-base or multiple rates of VAT ranging from 1.5 per cent to 10 per cent is currently enjoyed by 19 sectors as a tax-benefit for sustaining in the competition and flourish.