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The National Board of Revenue (NBR) has offered tax benefit to local elevator manufacturers in a bid to reduce its dependency on imports.
Local manufacturers will enjoy waiver from payment of Value Added Tax and Supplementary Duty on imports of machinery and spare parts of elevators as well as its production.
However, Advance Tax (AT) at a rate of 5.0 per cent will remain in place on import of machinery.
The waiver will remain valid until March 30, 2022.
The VAT wing of the NBR issued a Statutory Regulatory Order (SRO) in this regard on May 14, 2020.
As per SRO, the manufacturers will have to comply with some conditions to enjoy the exemption.
They must have to be registered with the Bangladesh Investment Development Authority or Bangladesh Economic Zones Authority and also have environmental clearance certificates.
For availing the benefit, the manufacturers must have 15 types of machineryat their plants, including shot blast machine, power press machine, vertical and horizontal milling machine, inverter DC Arc welding machine, lathe machine, CNC punching bending machine, fiber laser cutting machine, MIG welding machine, water jet cutting machine, straight side mechanical press machine, automatic rotary shearing machine, automatic TIG welding machine, bench drilling machine and power coating plant.
The producers must have own quality control system and after sales service facility.
Defaulters of VAT and tax will not be entitled for the benefits. A NBR committee will scrutinize the applications to offer the waiver, the SRO said.