3 Japan firms constructing metro rail, nat’l power network get tax waiver

Staff Correspondent | Published at 12:05am on July 13, 2018

Three Japanese firms, including metro rail implementing contractor, have got income tax waiver on their income derived from implementation of Dhaka metro rail and national power transmission network development project.
The National Board of Revenue on July 4 issued two statutory regulatory orders allowing tax waiver to the companies.
Japanese nationals employed in the projects will also enjoy the tax exemption benefit on their income.
Officials of the revenue board said that the tax exemption was given as per the exchange of notes signed between Bangladesh and Japan in this connection.
The companies and their Japanese employees will enjoy the benefit with retrospective effect from 2016, they said.
According to the SRO issued for metro rail project, Tokyu Construction Co Ltd, which is implementing the Dhaka Mass Rapid Transit Development Project, will enjoy tax exemption on its income generated from project in forms of contractor, supply and consultancy business.
Japanese firms Fujikura Ltd and Itochu Corporation will get the benefit on same types of income derived from national power transmission network development project.
The government is constructing metro rail from Uttara to Motijheel, officially known as Mass Rapid Transit (MRT) Line-6, with a cost of Tk 22,000 crore targeting to carry 60,000 passengers per hour to ease traffic congestion in the capital.
The 12-kilometre first part stretch from Uttara to Agargaon of the 20km metro rail is expected to open by the end of 2019.
As per schedule, the second phase from Agargaon to Motijheel will be completed by December 2020.
Of the cost, the Japan government will provide Tk 16,600 crore through Japan International Cooperation Agency as soft loan.
The metro rail will have 16 stations, including at Uttara, Mirpur, Rokeya Sarani, Khamarbari, Farmgate, Sonargaon Hotel, Shahbagh, Doel Chattar, Topkhana Road and Motijheel.