Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
The National Board of Revenue (NBR) has offered tax exemption facility to three Japanese firms involved in the country's two development projects including metro-rail.
The companies will enjoy waiver from payment of income tax on their earnings from the projects.
Besides, the Japanese nationals employed in the projects will also enjoy the tax exemption benefit on their income.
The companies and their Japanese staff members will enjoy the benefit with retrospective effect from 2016.
Of the companies, Tokyu Construction Co. Ltd, the implementing company of Dhaka Mass Rapid Transit (MRT-6) Development Project, will enjoy tax exemption on its income generated from project.
The company will not be subjected to pay tax on the income earned as the metro-rail project's contractor and supplier as well as from its related consultancy work.
Two other Japanese companies - Fujikura Ltd and Itochu Corporation - involved in national power transmission network development project, will get tax waiver on their earning from it.
NBR has offered the income tax exemption by issuing two separate Statutory Regulatory Orders (SROs), dated July 4, 2018.
The NBR officials said the tax exemption has been given as per the notes signed between Bangladesh and Japan in this connection.
The tax waiver will facilitate implementation of the metro-rail and the power sector development projects.
The government is implementing the MRT project with the support of Japan government to ease traffic congestion of the capital.