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The National Board of Revenue (NBR) has waived Value Added Tax (VAT) to facilitate local production of personal protective equipment (PPE) and surgical face masks to fight COVID-19.
From now on, local manufacturers will enjoy exemptions from payment of VAT at production, trading and supply stage. The waiver will remain valid until June 30, 2020.
The VAT policy wing of the NBR issued a special order in this regard on Wednesday.
The order, signed by first secretary of VAT policy wing Kazi Farid Uddin, said the exemption has been given considering the growing demand for PPE and surgical masks during the COVID-19 pandemic.
VAT was applicable at a rate of 15 per cent in each of three stages of supply chain.
Officials said the waiver has been offered following requests from Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Waiver of VAT at three stages of supply chain will make the items available and affordable and help contain the spread of coronavirus pandemic in the country.
Earlier on March 22, the NBR waived duty on import of 17 types of items, including PPE and surgical masks, related to treatment of and protection from COVID-19.
Currently, a number of local manufacturers are producing PPE and masks to meet the recent demand.
In the order, the VAT wing said PPE and surgical masks are very essential protective gear for doctors, nurses and other health service providers.
The country may need a large number of quality PPE and masks in the coming days due to the spread of coronavirus pandemic in Bangladesh, the order said.