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Development cost of EZ, Hi-Tech parks to increase

FE REPORT | June 07, 2024 00:00:00

The Development cost of Economic Zones (EZ) and Hi-Tech parks is likely to increase as import duty on some construction materials has been proposed in the budget for the next fiscal year.

In the budget speech, Finance Minister Abul Hassan Mahmood Ali proposed to impose 1.0 per cent customs duty (CD) for imports of construction materials for the developer of EZs and 5.0 per cent on the hi-tech parks from the existing zero per cent.

EZs can import their capital machineries and some of their construction materials at a concessionary rate of zero per cent, the minister said adding that even developers of BEZA enjoys the same benefit and can import their materials necessary for development at zero per cent duty.

"As a measure of rationalizing tax expenditure, I recommend reducing the benefit and propose to impose a 1.0 per cent CD for imports under the related notifications," said the Minister.

The proposed budget also imposed all types of taxes except import duty on vehicles imported by establishments within economic zones and the High-Tech Parks.

"Furthermore, no duties and tax are levied on vehicles imported by establishments within High-Tech Park. In this instance, I propose that only customs duty (CD) be exempted, while all other duties and taxes will be applicable," the minister said.

More than 200 companies have already been allocated land in 29 economic zones under the Bangladesh Economic Zone Authority (BEZA), with proposed investments amounting to approximately $22.50 billion, the minister told the parliament.

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