The National Board of Revenue has exempted investors from payment of all types of duties and taxes on import of spare parts for their factories located in the economic zones of the country.
Customs wing of the revenue board on January 9 issued a statutory regulatory order, waiving the EZ factories from payment of customs duty, regulatory duty, supplementary duty and value-added tax on import of spare parts.
The NBR in July, 2015 exempted the EZ units from payment of the duties and taxes on import of capital machinery and construction materials, except SM rod/bar, cement, pre-fabricated building, iron and steel sheet which are available on the local market.
Now, the investors will enjoy the benefit for import of several hundred types of spare parts.
The EZ units, however, will have to comply with a number of conditions, including being registered with the value-added tax wing of the NBR and taking approval from the Bangladesh Economic Zone Authority for the import consignment containing names of spare parts, description of items and quantity of products, for availing the benefit as per original SRO issued in July, 2015.
The word ‘spare parts’ would cover the items under heading 39.23 to heading 82.09 of the customs wing’s gazette notification no 128 issued in 2017 and items described as spare parts under heading 84.01 to heading 94.06 in the First Schedule of the Customs Act-1969.
Officials said that the NBR offered the waiver to the EZ investors following a BEZA recommendation.
The BEZA had made several requests over the last three years to the revenue board in this connection.
The BEZA had argued that the industries located in the export processing zones under the Bangladesh Export Processing Zones Authority also got exemption from payment of duties and taxes on import of spare parts along with capital machinery.
Private EPZs also enjoy the same benefit.
The BEZA governing body headed by prime minister Sheikh Hasina also decided that the NBR would take required steps regarding the issue after scrutiny of the BEZA proposal.
NBR officials said that they made the decision considering the impact of such waiver on boosting private investment and generating employment.
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