Tax waiver planned to encourage ‘Made in Bangladesh’admin2019
The government is looking to increase dependency on the country’s products by encouraging manufacturing. To help the entrepreneurs, the Finance Minister would announce the tax and Vat waiver in the June budget session.
It’s all on the probabilities. The vat exemption may be stretched for electronic goods which included cellphones, refrigerators, AC, fridges, TV and automobile industry. At the same time, other home appliances like washing machines, electric sewing machine, microwave oven and blender is likely to get the same benefit for the first time.
Additionally, the budget may also announce a 10-year tax holiday for new factories rolling out production but the factories will have to be set-up out of Dhaka and Chittagong cities. Also, the companies have to add value to their products from 20-30%. The manufacturers set up in these cities can also enjoy tax holidays but limited to 5years only.
However, an NBR official expressed that nothing was final until the budget had been placed in the parliament. He also said that, ‘the made-in-Bangladesh’ concept is being nurtured to boost local industries and employment by tax and vat exemption and providing tax holiday for different sectors for over a decade now.
Vat and Tax exemption has inspired the local entrepreneurs to start manufacturing electronics products and bring the product cost in much lower. Entrepreneurs have expressed their gratitude for the waiver in 2010.
Apart from taking 90% place in the local market, the local products have created the direct and indirect employment of over 5lakhs people and reduced the price of the appliances. Apart from local brands, foreign brands have also set up factories.
GolamMurshed, Managing Director expressed the necessity to come out of the dependency on the RMG sector. Because of the Tax and Vat waiver, the electric and electronics could emerge as a new alternative, he added.
Source: The Business Standard, The Financial Express
Picture from VATGlobal