Customers will no longer have to pay extra VAT at Super shops

Consumers shopping at supershops will soon be relieved of paying any additional VAT (Value Added Tax) on top of the price displayed on products. 

Instead, they will only be required to pay the retail price shown on the product labels. This move comes as an agreement between the National Board of Revenue (NBR) and superstore owners nears its final stages. 

The NBR is expected to officially announce this decision shortly by issuing a notification.

This decision follows concerns raised after the implementation of a 7.5% VAT on superstore purchases, which was introduced in the national budget earlier this year. 

The superstore owners expressed their dissatisfaction over this for some time, arguing that the extra VAT placed an undue burden on customers. 

As a result, multiple discussions were held between the superstore representatives and NBR officials, especially with the VAT department, to address the issue.

Currently, the NBR collects more than 150 crore taka in VAT annually from the superstore sector. 

However, superstore owners argue that if VAT is properly included in the retail price (MRP) and business is conducted in accordance with the rules, the NBR could collect as much as 4,000 crore taka from this sector.

According to sources from the NBR, one of the main reasons for this adjustment was the additional VAT burden faced by consumers at superstores. 

To resolve this, all products sold at superstores will now have a fixed retail price (MRP) that already includes the required 15% VAT. 

However, there’s a condition—superstore owners must purchase their products from suppliers who provide proper VAT invoices. 

In return, the superstore owners will pay VAT on the value-added portion of their business and will be able to claim VAT rebates from previous stages in the supply chain.

For items that are exempt from VAT at the production level, superstore owners will not be required to pay VAT.

This step is expected to simplify the pricing structure and provide transparency for consumers, ensuring they don’t feel the extra burden of VAT on their purchases.

With this change, both superstore owners and consumers are expected to benefit, with less confusion surrounding VAT, and an overall smoother shopping experience for customers.