Bangladesh lifts VAT on port services for export-oriented industries

10 Jan '24

1 min read

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Insights

Bangladesh's National Board of Revenue recently lifted value-added tax (VAT) on port services for raw material imports and finished goods exports by export-oriented industries.
Around 45 per cent of containerised goods, mainly raw materials, imported through Chittagong port attracted VAT, raising the cost of exports.
The decision was hailed by exporters.

Bangladesh’s National Board of Revenue (NBR) recently lifted value-added tax (VAT) on port services for raw material imports and finished goods exports by export-oriented industries in the country.

Around 45 per cent of containerised goods, primarily raw materials, imported through Chittagong port attracted VAT, raising the cost of exports, mainly garments.

The government decision was welcomed by exporter bodies, especially those of readymade garments.

The VAT, being levied on service charges, causes an additional cost of over Tk 1,000 per twenty-foot equivalent unit container, according to domestic media reports.

The reinstatement of the VAT exemption is expected to provide significant relief to export-oriented industries and boost their competitiveness in international markets.

Fibre2Fashion News Desk (DS)

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