HC questions double VAT on sweets

Staff Correspondent
The High Court yesterday issued a rule upon the government to explain in two weeks why its action of collecting value added tax (VAT) twice from sweetmeat sales should not be declared illegal. The rule came following a writ petition claiming that the authorities concerned are collecting 15 per cent VAT on sweetmeat from the mills and another 15 per cent VAT from the sale centres, which is illegal as per rules of VAT Act 1991. According to Section 5 (4) of the act, the VAT has to be imposed on the whole of the sweetmeat, the petition said. The HC bench of Justice Md Ashfaqul Islam and Justice Mostafa Zaman Islam issued the rule after hearing the petition filed by MA Motaleb, president of Bangladesh Sweetmeat Manufactures Association.