The government has exempted the household appliance industry from Value Added Tax or VAT to ease the dependence on foreign goods.
In the FY 2021-22 budget unveiled on Thursday, the government included VAT exemption on locally manufactured blenders, juicers, mixers, grinders, electric kettles, rice cookers, multi-cookers and pressure cookers.
Washing machines, microwave ovens and electric ovens made in Bangladesh will also enjoy the VAT exemption, reports bdnews24.com.
The exemption of Advance Tax on raw materials of iron products, scrap vessels and ethylene glycol, terephthalic acid, ethylene of propylene will help the businesses manufacture PVC and PET resins, used in boardy leatheroid, paint and adhesive agents, or fibres for clothing, containers for liquids and foods, and thermoforming for manufacturing.
Finance Minister AHM Mustafa Kamal has also proposed VAT exemption on fresh fruit and manufacturing of puffed rice.
To keep the existing momentum of growth of local industries, he proposed to continue VAT exemption facilities on manufacturing LPG cylinder, refrigerator, freezer and its compressor, polypropylene staple fibre, air conditioner and its compressor, motor car and motor vehicle.
To make business easy, the finance minister proposed a series of measures, including a decrease of Advance Tax for import of raw materials for industries to 3.0 per cent from 4.0 per cent.