Factories inside the country's export processing zones (EPZs) will enjoy tax exemption on import of 42 types of products.
The manufacturing units are exempted from all sorts of import taxes like regulatory duty, value-added tax, supplementary duty and advance tax, according to a Statutory Regulatory Order (SRO) issued by National Board of Revenue (NBR) on March 10.
Officials said the NBR offered the incentive as requested by the Bangladesh Export Processing Zones Authority (BEPZA) to attract foreign direct investment (FDI) in the EPZs.
The EPZ factories have been enjoying the exemption since April 2017, but facing problems in importing the products as the NBR scrapped it in the budget for current fiscal year.
However, the investors were releasing the imported goods with unconditional bank guarantee as per order of the customs authority.
Investors had been complaining about complexities to avail the benefits. BEPZA also informed the NBR that it might result in decline in new foreign investment in the EPZs, officials said.
The products include machinery oil, industrial refrigerator/freezer, washing machine, dryer, heater, floor cleaning machine, air conditioner and spare parts, heavy duty electric cable, safety hand gloves, safety working shoes, hand tools and their parts and components, measuring, testing device and their parts and components, security appliances and safety and firefighting equipment, basic medical equipment, hospital furniture, ambulance, office furniture and equipment, lamps, coal, service lift, fork lift, safety vault and lockers, and all types of generator sets.
Investors will also enjoy the benefit on import of refrigerator and microwave oven for canteen, solar power plant, power factor improvement plant, evaporative cooling machines, mannequins/tailor's dummy, drinking water treatment machine, all types of generator sets, projection screen, multimedia projector, video conference camera, busbar trunking system, IPS, UPS and wireless sets.
The customs wing, however, has tagged some conditions for investors on availing the facility.
The sale and transfer of the products under the duty-free facility would require permission from the customs authorities, the SRO said.
Importers will have to pay applicable duty and taxes in case of transfer and sale of the products imported under the benefits.
A total of 465 factories are in operation in eight EPZs across the country. Investors from 38 countries have so far invested more than US$ 5.0 billion in the EPZs.
