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Promoting Hi-tech Park factories

Govt cuts tax, duty on ATM, CCTV parts

Doulot Akter Mala | January 21, 2019 00:00:00

The government has offered tax and duty benefits on import of various parts for producing and assembling ATM machine and CCTV camera in the Hi-tech Park at Kaliakoir in Gazipur.

Customs Duties (CD) on import of parts have been reduced to 1.0 per cent and 10 per cent from the existing variable rates of up to 25 per cent.

Besides, import of ATM machine and CCTV camera parts has been exempted from payment of Value Added Tax (VAT), Regulatory Duty (RD) and Supplementary Duty (SD).

The Customs Wing of National Board of Revenue (NBR) issued a Statutory Regulatory Order (SRO), dated January 16, in this connection.

Officials said companies that will set up plants in the Hi-tech Park and produce or assemble ATM machine and CCTV camera will be entitled to enjoy the benefits under the SRO.

They also said NBR has offered the duty benefits following requests of the Bangladesh Hi-Tech Park Authority (BHTPA) to encourage investors.

Talking to the FE, BHTPA Managing Director Hosne Ara Begum said construction of a number of infrastructure facilities has been started for production of those items.

"Samsung, Vibrant and some other companies are expected to invest here, as they have already shown their interest."

ATM machine, laptop and mobile phone will be produced in the Hi-Tech Park.

Without such incentives, the companies may not be encouraged to invest in it, she added.

However, NBR has tagged some conditions for the companies concerned for enjoying the tax benefit in a bid to check abuse of the facility.

According to the conditions, after establishing factories in the park, the companies will have to apply to the NBR chairman for getting the tax benefit under the SRO.

A team, comprising representatives of the Ministry of ICT, BHTPA and VAT Wing, will scrutinise the applications and conduct physical inspection. On the basis of the team's report, NBR will allow the companies to enjoy the benefit.

An attested copy of the NBR approval letter will have to be submitted with the bill of entry at the time of customs assessment of each of the import consignments.

Before importing the parts, the companies will have to submit details of possible required parts and logical depreciation for production and assembling of each unit of ATM machine and CCTV to the VAT commissioner concerned.

Copy of the VAT commissioner's approval letter will also be required with the bill of entry at the time of customs assessment.

The VAT officials will conduct physical inspection after every six months in the factories to verify whether the companies are producing or assembling the machines using the imported parts.

Apart from production or assembling of ATM machine and CCTV camera, the companies will not be allowed to use the parts, imported under the tax benefit, for other purposes.

Selling or handing over of the imported parts is also prohibited as per the SRO.

In case of violation of these conditions, NBR will take legal actions as per Customs Law 1969 or VAT Law 1991 or any other law concerned.

In the SRO, Customs Wing has given prescribed formats for physical inspection report of the factories and application along with details of the required import parts for the companies.

The companies must have VAT registration as producer or assembler as per VAT Law 1991, and also have own testing laboratory or contract with any recognised testing lab for quality control of their produced items.

A number of items including ATM parts (EPP/midbox etc), calculating machine and pocket-size data recording, reproducing and display machines with calculating functions, accounting machines, postage franking machines, ticket issuing machines, and similar machines incorporating a calculating device, cash registers, printed PVC sheets, processors and controllers, whet, or not comb, logic ckt, SIM module, proximity cards and tags, LED/flashlight, synthetic cloth, CCD lens module, coil, magnet for speaker, stereo audio connector, cash deposit machine, ATM safe (alone), computer software (driver CD) and assembling spare items will enjoy the tax benefit.

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