The government has extended the value-added tax (VAT) exemption facility for elevator manufacturing companies by three years until June 2025.
The extension comes two years after the facility was first introduced by the government in a bid to expedite local elevator manufacturing industries by waiving VAT on the production of local capital machinery and elevator parts.
The Internal resource division (IRD) under the finance ministry issued a statutory regulatory order (SRO) in this regard, which will come into effect from next April.
According to the SRO, local elevator manufacturers will enjoy waivers on VAT, advance tax, supplementary and other duties.
Meanwhile, industry insiders said the VAT exemption facility is yet to produce the expected level of success in homegrown elevator manufacturing due to a lack of companies in the sector. Currently, the Walton group is the only elevator manufacturer in the country while a few companies are involved with assembling elevator parts.
Bangladesh needs more than 5,000 units of lifts every year and most of them are imported from China. The market, worth around Tk1,200 crore, is growing at about 20% per year propelled by fast-growing cities.