Grocery stores among 16 types of retail outlets to be included in tax net: Minister

The government has adopted a plan to impose value added tax (VAT) on 16 types of retail outlets from the fiscal year starting 1 July, said Finance Minister Amir Khosru Mahmud Chowdhury on Wednesday.

The finance minister announced the plan in response to a query placed by reserved women’s seat lawmaker Selina Sultana at the National Parliament.

The 16 types of retail outlets include: grocery stores, apparel and fabric stores, confectionary stores, cosmetics outlets, plastic and household ceramic product sellers, shoe stores, hardware sellers, event decorator outlets, mobile phone traders, paint stores, sanitary and household fitting stores, tiles stores, corrugated tin sellers, rod and cement sellers, furniture stores, beauty parlours, sweets sellers and restaurants.

Sellers of electronic home appliances like air conditioners, fridges, and microwave ovens would also face vats from the fiscal year 2026-27.

In the previous fiscal year, FY2024-25, over Tk1.41 thousand crore in different types of taxes, including VAT, was collected, the finance minister told the parliament.