NBR to offer fiscal benefits on basis of industries’ inputs

The National Board of Revenue (NBR), from now on, will offer monetary benefits to the investors and businesses on the basis of their economic contribution and payback plan, officials said.
To get the benefits, the industries concerned will have to furnish their year-wise plans, for next five years, on investment, production and supply, export potentials, existing total tax incidence and volume of tax exemptions.
Besides, they will have to furnish details of their next five years payback plan to the government, including income tax, VAT, amount of foreign currency savings, and employment generation.
The NBR recently issued guidelines and prescribed format in this regard, seeking relevant data from businesses of all sectors of the country, to analyse their industrial data for giving the tax exemption.
The NBR's Customs Wing has sought information related to the industries' specific plan for the next five years and performances of the previous few years along with their duty benefit pleas.
It also sought budget proposals for the next fiscal year, 2019-20, on amendments of customs act and rationalisation of tariff rates from 115 trade bodies, associations and other stakeholders, including the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
The industries and businesses will have to provide the details by March 14.
An investment promotion team (IPT) of the Customs Wing will scrutinise the data prior to giving tax benefits on the basis of the industries' proposals.
Talking to the FE, Md Firoz Shah Alam, NBR member (customs policy), said the government will be able to conduct cost benefit analysis on the basis of the data before offering duty benefits to the industries.
"We will review economic benefit of the country prior to offering duty benefits on import of products."
The NBR has given a prescribed format for the industries to furnish the details, so that the government can create a complete database on increase of future investment, employment generation, and revenue mobilisation etc, he also said.
"Benefits and investment potentials will be reviewed not only for industries, but it will be done sector-wise."
Income tax, customs and VAT wings will be able to devise fiscal measures analysing the data.
The industries, generating higher investment, value addition and employment, will get fiscal benefits, he added.
The IPT has been constituted in 2018 comprising public and private sector representatives to scrutinise the fiscal policies and recommend measures for investment promotion in the country.
The NBR member (customs policy) is the head of the team, while the first secretary (customs policy) is the member-secretary.
In the NBR's prescribed format, the industries will have to give details on their year-wise (five-year) investment plan that will include cost of land, building, equipments and infrastructure.
Next five years' production and supply plan, next two years' local demand analysis, last three years' production and supply, duty taxes on raw materials, plan of next five years' payback in the form of income tax, VAT, foreign currency and employment generation after availing duty benefits should be furnished in the format.
It has been alleged that some influential quarters seek tax benefit and persuade the tax authority to offer the same. Due to lack of database, the NBR faces difficulties to review their proposals and find out economic outcomes against the tax benefit.
The officials said from now on, they will be able to analyse the economic impacts before giving duty benefits.

[email protected]