The National Board of Revenue (NBR) has extended the time limit to two years from one and a half years, to import capital machinery with tax advantages, as part of its effort to promote industries, especially large-scale ones.
Moreover, it will allow more time if entrepreneurs have valid reasons for delay in such imports.
The Internal Resource Division under the finance ministry issued a statutory regulatory order in this regard on Tuesday, mentioning the list of machines that will enjoy tax privileges.
NBR officials said the government made the move to ease capital machinery imports under its trade facilitation initiative.
The order, signed by Internal Resource Division Senior Secretary and NBR Chairman, Abu Hena Md Rahmatul Muneem, says entrepreneurs should complete capital machinery imports within 24 months of their first shipment arriving, in case of multiple consignments under one or several letters of credit.
Earlier, it was 18 months, but entrepreneurs had an opportunity to request the NBR to extend the time for an additional six months on valid grounds.
Under the new rules, they now can seek a one-year extension. In case entrepreneurs fail to import all the machines within the timeline, the NBR can consider giving them more time.
Currently, the government offers entrepreneurs importing capital machinery a nominal 1% customs duty to promote rapid industrialization.
The new order also relaxed the time limit on seeking expert opinion for capital machinery imports.