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Tax holiday to be extended until 2013 - Minister
18 May '11
3 min read
Bangladesh Government will extend tax holiday facility, that is due to expire on June 30, 2011, until 2013, it was announced by the Finance Minister Mr. Abul Maal Abdul Muhith.
The Minister, however, added that there will be some changes in respect of units that are presently enjoying the tax holiday facility.
He further added that the Government wants to develop a tax payment culture, so it is not in favour of extending tax holiday facilities. Hence, after 2013, the tax holiday facility would be replaced by a reduced tax policy, which everyone will have to pay.
Among the other things declared by the Minister, the extension of bond license facility to two years from the present one year, merger of import and export house of the Chittagong port in 2011, and setting up of a separate bond commissionarate in 2012 are prominent.
While responding to proposals of the business community in a budget consultative meeting of the National Board of Revenue (NBR), the Minister promised to provide special incentives for SMEs and woman entrepreneurs.
Mr. Muhith said that “the Government had earlier intervened on the lending rates to help the industry cope with the global recession but it cannot continue for unlimited period". He, therefore, requested the market players to settle the issue of higher lending rates instead of seeking help from the Government.
Rejecting the demand of exporters for tax-benefit, the Finance Minister said the exporters are already enjoying different tax benefits and now it is their turn to return some benefit to the Government.
Prior to the meeting of the NBR, the business leaders had requested the Government to continue with tax holiday facility as well as Pre-shipment Inspection System (PSI).
The business leaders had also pleaded for withdrawal of tax on rented space, a cut in higher lending rates of banks, and an end to discrimination, in terms of government facilities, between industries located within and outside the export processing zones.
Meanwhile, Mr. Jahangir Alamin, President of Bangladesh Textiles Mills Association (BTMA), has asked the Government to waive all kinds of taxes on machinery and chemicals of effluent treatment plant (ETP) to help industries install the plant.
In the same vein, Mr. Shafiul Islam Mohiuddin, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has demanded speedy disposal of export development fund (EDF).
Mr. Abdus Salam Mushedy, President, Bangladesh Exporters Association (BEA) has asked the Government to provide tax waiver on cash incentives, allow duty free import of diesel and furnace oil for export-oriented industries and duty-free import of covered van.
The Minister, however, added that there will be some changes in respect of units that are presently enjoying the tax holiday facility.
He further added that the Government wants to develop a tax payment culture, so it is not in favour of extending tax holiday facilities. Hence, after 2013, the tax holiday facility would be replaced by a reduced tax policy, which everyone will have to pay.
Among the other things declared by the Minister, the extension of bond license facility to two years from the present one year, merger of import and export house of the Chittagong port in 2011, and setting up of a separate bond commissionarate in 2012 are prominent.
While responding to proposals of the business community in a budget consultative meeting of the National Board of Revenue (NBR), the Minister promised to provide special incentives for SMEs and woman entrepreneurs.
Mr. Muhith said that “the Government had earlier intervened on the lending rates to help the industry cope with the global recession but it cannot continue for unlimited period". He, therefore, requested the market players to settle the issue of higher lending rates instead of seeking help from the Government.
Rejecting the demand of exporters for tax-benefit, the Finance Minister said the exporters are already enjoying different tax benefits and now it is their turn to return some benefit to the Government.
Prior to the meeting of the NBR, the business leaders had requested the Government to continue with tax holiday facility as well as Pre-shipment Inspection System (PSI).
The business leaders had also pleaded for withdrawal of tax on rented space, a cut in higher lending rates of banks, and an end to discrimination, in terms of government facilities, between industries located within and outside the export processing zones.
Meanwhile, Mr. Jahangir Alamin, President of Bangladesh Textiles Mills Association (BTMA), has asked the Government to waive all kinds of taxes on machinery and chemicals of effluent treatment plant (ETP) to help industries install the plant.
In the same vein, Mr. Shafiul Islam Mohiuddin, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has demanded speedy disposal of export development fund (EDF).
Mr. Abdus Salam Mushedy, President, Bangladesh Exporters Association (BEA) has asked the Government to provide tax waiver on cash incentives, allow duty free import of diesel and furnace oil for export-oriented industries and duty-free import of covered van.
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