Customers will no longer have to pay value added tax for purchases at supershops.
The retail price of products will be the final price to pay, according to a National Board of Revenue release.
The NBR鈥檚 VAT department issued a notification in this regard on Thursday.
NBR authorities and supershop owners took the decision following several meetings.
Earlier, VAT rates varied ranging from 1.5 to 5 per cent, with a 7.5 per cent rate applied during last year鈥檚 budget.
Chain supershop owners had been objecting this for a long time.
The National Board of Revenue has also halved value added tax on machine-made and hand-made biscuits to 7.5 per cent from the existing 15 per cent.
In this regard, a gazette notification signed by Md Abdur Rahman Khan, chairman of the NBR, was issued on Wednesday.
According to the notification, the reduced VAT will apply to machine-made biscuits and hand-made biscuits and cakes with a price exceeding Tk 200 a kilogram and Tk 300 a kilogram, respectively.
In January, the government increased VAT and supplementary duties on over a hundred goods and services, including bakery products, biscuits and cakes.
The VAT on these items was raised from 5 per cent to 15 per cent.
