Customers will no longer have to pay the additional 7.5 percent trade value-added tax (VAT) when shopping at supermarkets, according to the National Board of Revenue (NBR).

Previously, this VAT was applicable to the total shopping bill and was mentioned on receipts provided by superstores. From now on, customers will only need to pay the maximum retail prices (MRP) listed on products, which already include a 15 percent VAT.

Supermarket operators will now be able to claim input tax credit on the 15 percent VAT applied to consumer goods they sell. As a result, shoppers will no longer need to pay the trade VAT, said a senior NBR official, who spoke on condition of anonymity.

Additionally, supermarkets will be required to purchase all goods using VAT challans.

Welcoming the move, Sabbir Hasan Nasir, managing director of Shwapno, Bangladesh's largest retail chain, said, "Previously, the 5 percent VAT or the currently effective 7.5 percent VAT on supershops was an extra financial burden for customers."

"Now, that additional expense will no longer exist. Hopefully, this will bring more balance to the market system," he added.

On January 9 this year, the revenue board issued an ordinance raising the trade VAT rate from 5 percent to 7.5 percent, which also applied to supershops. Following this, the Supermarket Owners Association and senior executives of various supershops held discussions with NBR officials, requesting a reduction in the VAT rate.

However, instead of lowering the rate, the NBR simplified the VAT process for supermarkets.

In the past, supermarkets collected an additional 5 percent VAT beyond the MRPs, increasing costs for consumers, said the NBR official.

"This was inconsistent with consumer law. So from now on, supermarkets will follow the standard VAT rate of 15 percent, maintain proper records of purchases and sales, and claim VAT rebates. This will relieve consumers from paying extra trade VAT," he added.

The revenue board's latest decision aims to simplify tax compliance and ease operational hurdles for supermarket businesses, according to NBR officials.