The National Board of Revenue has decided to exempt entrepreneurs from paying value-added tax on production of industrial mould to facilitate industrialisation.
Finance minister AMA Muhith has already approved a summary of the NBR withdrawing 15 per cent VAT on industrial mould at production stage to encourage commercial production of the item in the country, revenue board officials told New Age on Monday.
VAT wing of the revenue board would issue a statutory regulatory order in a day or two in this connection, they said.
Currently, import and production of industrial mould enjoys VAT exemption if those are used for manufacturing of industrial products by the importer or manufacturer while commercial production is subject to 15 per cent VAT.
Industrial mould is basically a pattern or model used in production process to give a definite form of industrial products.
Import of raw materials for production of mould in the country also enjoy duty waiver. Local manufacturers pay only one per cent customs duty on import of raw materials for the sector as the revenue board offers waiver in additional customs duty, regulatory duty and supplementary duty on 20 types of raw materials.
The NBR officials said that the decision of providing VAT exemption was made following an application of JMI Group, one of the leading companies in the field of syringes and medical devices, pharmaceuticals and vaccine manufacturing sector.
The company is setting up mould manufacturing factory in the country, they said.
The officials said that the exemption would be applicable for the industrial moulds such as moulding boxes for metal foundry, mould bases, moulding patterns, moulds for metal, metal carbides, glass, mineral materials, rubber or plastics, injection or compression types of moulds.