Locally manufactured vehicles, ACs, freezers, compressors would be exempted from VAT
Finance Minister AHM Mustafa Kamal on Thursday proposed exempting taxes for ten sectors yet again, including manufacturing of household items and vehicles in Bangladesh.
To keep the continuous growth of local industries, the finance minister recommended that VAT (value-added tax) exemption facilities be extended to manufacture of LPG cylinders, refrigerators, freezers, and its compressors for one more year.
VAT exemption on manufacture of polypropylene staple fibre has been extended for two more years, air conditioners and its compressors for three more years, and motor cars and vehicles for five more years.
Meanwhile, to decrease the dependence on foreign goods, Mustafa Kamal proposed exempting taxes for some local sectors in an attempt to spur local manufacturing of daily household products.
VAT exemption provision has been kept for local manufacturing of blenders, juicers, mixers, grinders, electric kettles, rice cookers, multi-cookers, and pressure cookers
VAT exemption eligibility has been kept for local manufacturing of washing machines, microwave ovens, and electric ovens.
Exemption of Advance Tax (AT) provision has been kept for production of certain raw materials of iron products, scrap vessel and ethylene glycol, terephthalic acid, ethylene/propylene which are used for manufacturing of PVC and PET resin.
VAT exemption provision has been kept for manufacturing of puffed rice and for trading in fresh fruits.