VAT Increase Won't Affect Price of Essential Goods

The National Board of Revenue (NBR) has increased VAT to 15% on at least 43 types of goods and services, including hotels, restaurants, and clothing. However, Economic Advisor Dr Salehuddin Ahmed stated that this decision would not impact the prices of essential goods.

Speaking to journalists after a meeting of the Government Procurement Advisory Committee at the Secretariat on Thursday (January 2), he made this statement.

The advisor clarified that the tax increase was implemented not to meet the conditions of the International Monetary Fund (IMF), but to boost revenue collection.

He added that although VAT has been increased for 43 goods and services, it will not burden the general public. Taxes have been raised for hotels rated above three stars, but not for ordinary hotels and restaurants.

Dr. Salehuddin Ahmed also expressed optimism that the country's economy would regain stability in the new year. He mentioned that banks would receive adequate support and that the upcoming budget would allocate more funds to the education and health sectors.