Tax exemption galore for local manufacturers, household goods

Finance Minister AHM Mustafa Kamal today proposed extending tax exemption facilities for ten sectors, including for several daily household products which are manufactured in Bangladesh.

To keep the existing momentum of growth of local industries, during his budget address, the finance minister recommended that Vat (value-added tax) exemption facilities be extended to: 

• Those engaged in manufacturing of LPG cylinders for another year
• Manufacturers of refrigerators, freezers and its compressors for one more year
• Manufacturers of polypropylene staple fibre for two more years
• Manufacturers of air conditioners and its compressors for three more years
• Manufacturers of motor cars and motor vehicles for five more years

Furthermore, to lessen dependence on foreign goods, the finance minister proposed tax exemptions for the following sectors in hopes of spurring local manufacturing of daily household products.  

This includes:

• VAT exemption at local production stage in the manufacturing of blender, juicer, mixer, grinder, electric kettle, rice cooker, multi-cooker, pressure cooker
• VAT exemption at production level in manufacturing of washing machine, microwave oven and electric oven
• Exemption of Advance Tax (AT) on certain raw materials of iron products, scrap vessel and ethylene glycol, terephthalic acid, ethylene/propylene which are used for manufacturing of PVC and PET resin
• VAT exemption on manufacturing of puffed rice
• VAT exemption of fresh fruit at the trading stage