What we commonly call VAT law, the official title of this VAT Law is Value Added Tax and Supplementary Duties Act 2012. the title mentions 2 taxes, but there are 4 taxes in Value Added Tax and Supplementary Duties Act 2012.
In this article, we will discuss the Supplementary Duty In Bangladesh according to the Supplementary Duties Act of 2012.
- Value Added Tax (VAT)
- Supplementary Duty (SD)
- Turnover Tax (TT)
- Advance Tax (AD)
Supplementary Duty In Bangladesh
Supplementary Duty (SD) in Bangladesh saves domestic industries from destruction. Supplementary duty rate depends on the type of goods or services that are usually specified in our country’s customs and tax regulations.
The Government of Bangladesh determines the list of items subject to supplementary duty and may include luxury items, tobacco, alcohol, certain electronics, and other unnecessary or harmful products.
What Is Supplementary Duty?
Supplementary Duty is an indirect tax levied by some countries on specific goods and services. The purpose of imposing supplementary duty (SD) is to generate additional government revenue and protect domestic industries by making imported goods relatively more expensive. It is an additional duty levied on top of the basic duty.
Supplementary Duty For Car In Bangladesh?
The supplementary duty for imported cars has been increased from 2001cc to 3000cc to 200% to 250%, with 3001cc to 4000cc hiked to 250% from 500%.
The Finance Minister has presented the national budget of Tk 6,78,064 crore for the financial year 2022-2023 with the highest priority to protect the marginalized people from price inflation due to the Russia-Ukraine conflict.
This is the fourth budget of the Prime Minister Sheikh Hasina-led government’s third consecutive term and the overall 51st budget of the country.
The Bangladesh government has also decided to increase the supplementary duty on hybrid vehicles in the mentioned budget.
Motor Vehicles and Other Motor Vehicles:
| Description | Existing Supplementary Duty Rate (%) | Proposed Supplementary Duty Rate (%) |
| Cylinder capacity from 2001 cc to 3000 cc | 200 | 350 |
| Cylinder capacity from 3001 cc to 4000 cc | 350 | 500 |
| Cylinder capacity exceeds 4,000 cc | 500 | 500 |
CKD Motor Vehicles, Station Wagons including Jeeps :
| Cylinder capacity from 2001 cc to 3000 cc | 100 | 150 |
| Cylinder capacity from 2001 cc to 3000 cc | 300 | 350 |
| Cylinder capacity exceeds 4000 cc | 350 | 500 |
Complete Hybrid Motor Vehicles and Other Motor Vehicles, including Station Wagons :
| Cylinder capacity from 2001 cc to 2500 cc | 45 | 60 |
| Cylinder capacity from 2501 cc to 3000 cc | 60 | 100 |
| Cylinder capacity from 3001 cc to 4000 cc | 100 | 150 |
| Cylinder capacity exceeds 4000 cc | 300 | 350 |
| Cylinder capacity 2001 cc or above microbus | 45 | 60 |
Rates Of Supplementary Duty On Goods and Services In Bangladesh
As we know, Supplementary Duty(SD) is usually specified in the country’s budget, and the rates may change from time to time, depending on the government’s fiscal policies.
Imposition of Supplementary Duties Under the Value Added Tax and Supplementary Duties Act 2012, Section 55 states that supplementary duties are leviable and payable on the import of goods, supply of goods manufactured in Bangladesh, and supply of services rendered in Bangladesh. But in two cases, no supplementary duty shall be levied.
- If a product is imported for export and not for home consumption.
- Supply of zero-rated goods or services.
Supplementary Duty On Goods And Services in Bangladesh
Supplementary Duty (SD) on goods is an additional indirect tax levied on specific goods in addition to the regular customs duty and other applicable taxes.
Many products are subject to supplementary duty, but we have mentioned below the rates of supplementary duty levied on some essential products.
At the import stage:
| Description of goods | Rate of supplementary duty (SD%) |
| Coconuts, Brazil nuts, Tomatoes, fresh or chilled, Carrots, Cheese and curd, Butter and other fats, Powdered milk, Frozen Shrimp, Fish, Meat, and other dried Meat (excluding wrapped/canned up to 2.5kg) | 20 |
| Fresh or dried mango, Grapes, Lemons, Fresh or dried Melons, Fresh apple, pears, Green tea, Black tea, Pepper, Cardamom | 20 |
| Sugar confectionery, Finished chocolate (Blocks, slabs, or bars), Sweet biscuits, Waffles and Waffers, Toasted products, Potato chips | 45 |
| Pasta, not cooked, Refined coconut oil, perfumes, Fireworks, Toilet paper, Towels, Napkins, | 30 |
| Non-alcoholic beer, other manufactured tobacco, Revolver, and pistol | 150 |
| Overcoats, car-coats, jackets, blazers, Women’s or girls’ suits, skirts, Night-shirts, pajamas, T-shirts, jerseys, baby garments, Gloves, Footwear, etc. | 45 |
At Supply Stage:
| Description of goods | Rate of supplementary duty (SD%) |
| Cooked Pasta, lasagne, Fruit juices and drinks, Fast food like Pizza, burgers, hot dogs, Chicken fry, Face Power, Hair lacquers | 10 |
| Wall tiled, ceramic, mosaic cubes, Telephone, Service by BRTA, Satellite Channel distribution, | 15 |
| Playing cards, Pocket lighters, goggles and correctives, eye and lip makeup preparations | 10 |
| Electronic cigarettes and similar devices, Air conditioning machines, Cigarette paper, swords, Parts, and accessories | 100 |
Conclusion
The rate of supplementary duty may change every year according to the changes in the country’s budget. As a conscious citizen, we should be aware of the country’s budget and various taxes.
For details on additional duty, value-added tax, and other taxes, you can visit our other articles for your desired information. And feel free to write in comments if you have any tax-related questions.