Meditation services to get costlier as VAT imposed

Finance Minister AHM Mustafa Kamal proposed to impose VAT on meditation services again after three years of exemption.

"I propose to withdraw the existing VAT exemption on 'Meditation Services'," said Finance Minister AHM Mustafa Kamal while placing the budget for FY23 at the parliament on Thursday.

The 7.0% VAT on meditation was first imposed in FY 2013-2014 but then Finance Minister AMA Muhith withdrew it in FY 2014-15 showing the ground of enabling people to recover from mental and physical illness.

The VAT on meditation was again proposed during the budget speech of FY 2018-19 but the finance minister held it up for the next two years amending the proposed finance bill of the same FY.

Finance Minister AHM Mustafa Kamal has placed the Tk6,78,064 crore national budget for FY23 at Jatiya Sangsad according top priority to safeguarding marginal people from inflation fuelled by the Russia-Ukraine conflict.

This is the fourth budget of the third consecutive term of the government led by Prime Minister Sheikh Hasina and also the overall 51st budget of the country.

The proposed budget is Tk74,383 crore higher than the original budget size of the FY2021-22 fiscal year, which was Tk6,03,681 crore.