Bangladesh: Banks need not to pay VAT on fees for audit of govt cash incentives, subsidies

Dhaka, June 30 (New Age): Bangladesh Bank on Sunday said scheduled banks would not have to pay value-added tax on fee for audit of cash incentive and subsidy offered by the government to the export items.
The BB issued a circular to authorised dealer branches of all banks saying that the VAT on audit fee would be paid from the government’s account from July 1, 2014.
A BB official told New Age on Sunday that the banks were now paying the VAT on the audit fee, but it was not logical as the banks conducted the audit against the government’s cash incentive and subsidy for export items.
The government pays around 5-20 per cent cash incentives for exports of various products like garments, jute, frozen fish and potatoes.