The National Board of Revenue has waived advance tax on import of a number of machinery, spare parts and raw materials for eight sectors including solar panel manufacturing, weaving, and poultry, livestock, fish and dairy feed manufacturing.
Value-added tax wing of the NBR on Sunday issued a statutory regulatory order exempting the sectors from paying advance tax (AT) at the rate of 5 per cent on import of the items.
According to the SRO, goods imported for personal consumption under Passenger (Non Tourist) Baggage (Import) Rules, 2016 and motor vehicles imported by parliament members under duty-free benefits will also enjoy the benefit.
The government in the national budget for 2019-20 imposed 5 per cent AT on import of almost all products, giving exemption to some businesses including exporters having bond licence, capital machinery and spare parts imported by registered manufacturers and life-saving drugs.
VAT officials said that the NBR waived solar panel manufacturers from payment of AT on import of machinery, spare parts and raw materials as the manufacturers would not be able to adjust the AT paid at import stage as the products were exempted from payment of customs duty, supplementary duty, VAT at both import and production stages.
There will be no AT on import of artificial staple fibre imported by spinning mills, they said, adding that imposition of AT on import of the products had created a discrimination for exporters without bond licences as sourcing of raw materials became costlier for them due to the tax.
Exporters having bonded warehouse facility do not have to pay AT on import of raw materials.
The NBR also exempted bonded warehouse licence-holding 100 per cent export-oriented readymade garment industry from the tax on import of needle detector.
According to the SRO, weavers recommended by and registered with the Bangladesh Handloom Board will enjoy exemption on payment of AT on import of polyester yarn and metalized yarn while members of registered the Jamdani Weavers Samity will enjoy the benefit on import of polyester yarn and other metalized yarn.
Poultry, livestock and dairy feed manufacturers, poultry or livestock enterprises, animal health company registered with the Department of Livestock Services, and fisheries and fish feed manufacturers registered with the Department of Fisheries have been waived from the AT on import of raw materials or preparations for feed production, it said.
There will be no AT on import of ocean going ships with capacity above 5,000 DWT, it added.
Officials said that motor vehicle imported by parliament members and goods imported by passengers had been waived from AT as import of the items as imported for personal consumption were exempted from other types of duties and taxes.
Importers of the products included in the list would not be able to adjust or get refund of the AT paid at import stage as, in most cases, there are no other taxes at import and production stages, they said, adding that AT paid at import stage was refundable or adjustable with payable tax at the production stage.
The sectors have also been demanding withdrawal of the AT as the tax has increased the production cost in the sectors, they added.
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