Finance Minister AHM Mustafa Kamal on Thursday said the government has decided to give 100 to 20 per cent tax holiday to eight local industries for their development.
“The eight new local industries will enjoy tax holiday at a reduced rate from 100 to 20 per cent under the new finance act,” he said while responding to a starred question made by M Mamunur Rashid Kiron of Noakhali-3 in the parliament, reports BSS.
Under the initiative, he said, the eight new local industries which would be setup completely within the period between July 2019 and June 2024, would get the tax-holiday privilege.
The new eight local industries are agriculture machineries, furniture, home appliances (blender, rice cooker, microwave oven, electric oven, washing machine, induction cooker and water filter), leather and leather goods, LED TV, mobile phone, plastic recycling and toy manufacturing.
Apart from this, the similar tax holiday advantage has also been imposed to more local industries which had been established within the period between July 2011 to June 2024.
These local industries are active pharmaceuticals ingredient and radio pharmaceuticals, automatic bricks, automobile, barrier contraceptive and rubber latex, basic components of electronics (resistor, capacitor, transistor, integrated circuit, multilayer PCB etc), bi-cycle including parts thereof, bio-fertilizer, biotechnology based agro products, boiler including parts and equipment thereof, compressor including parts thereof, computer hardware, insecticides or pesticides, locally produced fruits and vegetables processing, petro-chemicals, pharmaceuticals, textile machinery , tissue grafting and tyre manufacturing.
Even the government has also increased the timeframe of tax-rebate for the local industries which are engaging for producing rice bran oil, he added.
Besides, all the industries under the Information technology sector will get the total tax holiday.
Under the new act, the minister concluded that the tax free income for the SME sector’s annual turnover was up to Tk 3.6 million and now it has been revised to Tk 5.0 million for the same sector.