Bangladesh lifts VAT on port services for export-oriented industries
10 Jan 24 1 min read
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.
Around 45 per cent of containerised goods, primarily raw materials, imported through Chittagong port attracted VAT, raising the cost of exports, mainly garments.
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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.
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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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