LNG terminals get tax exemption for 15yrs

Staff Correspondent | Published: 23:01, Nov 02,2017 | Updated: 00:36, Nov 03,2017

 
 

The National Board of Revenue has exempted the Floating LNG Storage and Regasification Unit, the country’s first LNG terminal to be built at Moheshkhali in Cox’s Bazar, from paying income tax for 15 years.
The FSRU will be installed by US-based Excelerate Energy Bangladesh Ltd under the floating LNG terminal project having capacity of regasification of imported liquefied natural gas at the rate of up to 500 million cubic feet per day.
The income tax wing of the revenue board on October 30 issued a statutory regulatory order in this connection.
According to the SRO signed by NBR chairman Md Nojibur Rahman, the legal owner, disponent owner and terminal company group will enjoy the tax exemption against their income derived from the implementation of the project.
Excelerate Energy as terminal company will implement the project under the build, own, operate and transfer (BOOT) method and will transfer the floating terminal to Petrobangla, state-owned national oil and gas company, after 15 years of operation.
LNG terminals get tax exemption for 15yrs
Staff Correspondent
The National Board of Revenue has exempted the Floating LNG Storage and Regasification Unit, the country’s first LNG terminal to be built at Moheshkhali in Cox’s Bazar, from paying income tax for 15 years.
The FSRU will be installed by US-based Excelerate Energy Bangladesh Ltd under the floating LNG terminal project having capacity of regasification of imported liquefied natural gas at the rate of up to 500 million cubic feet per day.
The income tax wing of the revenue board on October 30 issued a statutory regulatory order in this connection.
According to the SRO signed by NBR chairman Md Nojibur Rahman, the legal owner, disponent owner and terminal company group will enjoy the tax exemption against their income derived from the implementation of the project.
Excelerate Energy as terminal company will implement the project under the build, own, operate and transfer (BOOT) method and will transfer the floating terminal to Petrobangla, state-owned national oil and gas company, after 15 years of operation.
Officials said that the terminal company would hire equipment including vessel for the FSRU.
The exemption will also cover the fare to be given to the vessel company, known as disponent owner of vessel.
The terminal company, however, will have to maintain the books of accounts and have to submit income tax returns regularly for availing the exemption facility, the SRO stated.
Local firm Summit LNG Terminal Company, a concern of Summit Group, will also develop a floating LNG terminal on the Moheshkhali Island. 

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