The country's apparel exporters will enjoy full waiver of Value Added Tax (VAT) on four types of services including expenditure on workers' welfare and entertainment, laboratory test fees, IT-enabled services and rent-a-car facility.
The National Board of Revenue (NBR) has offered the Value Added Tax exemption for export-oriented apparel makers by issuing a Statutory Regulatory Order (SRO) on November 29, 2018.
Value Added Tax ranging from 5.0 per cent to 15 per cent was applicable to those services.
It was a long-cherished demand of the country's apparel exporters associations including Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
The government offered the facility ahead of the national election slated for December 30.
Apparel exporters said they face complexities in record-keeping as the sector enjoys VAT exemption on most of the services.
Apart from those four services, apparel exporters since 2005 have been enjoying 100 per cent VAT exemption on 13 types of services including supply of goods and services, security, transport contractors and port services, and partial exemption up to 80 per cent on another three types of services including electricity, water and gas bills.
