Finance Minister AMA Muhith on Thursday proposed to bring online business under VAT net specifically as trading of goods and services online is now being recognized and established as a very popular mode.

‘Although this sector is not exempted from VAT right now, no exact definition of this service is currently there in the existing VAT system. Hence, I propose to define this service under the VAT system as well as propose to impose VAT at the rate of 4% on this service sector.’ said the minister.

Muhith made the proposal in the budget for the fiscal year 2015-16 in order to impose VAT, make changes to VAT rates and to increase the VAT net.