Shoppers in Bangladesh will no longer have to pay an additional 7.5% trade value-added tax (VAT) at supermarkets, the National Board of Revenue (NBR) has announced.

Previously, the VAT was charged on the total shopping bill and listed separately on receipts. Now, customers will only pay the maximum retail prices (MRP) printed on products, which already include a 15% VAT.

The decision allows supermarkets to claim input tax credits on the 15% VAT applied to goods they sell. In turn, shoppers are exempt from paying the extra trade VAT. An NBR official said supermarkets will now be required to purchase goods using VAT challans to maintain compliance.

Earlier this year, the NBR raised the trade VAT from 5% to 7.5%, prompting supermarket operators to appeal for a reduction. Instead of lowering the rate, the revenue board streamlined the VAT process.

NBR officials stated that the previous system was inconsistent with consumer law. The new policy aims to simplify tax compliance, reduce costs for shoppers, and ease supermarkets’ operational challenges.