NBR scraps tax waiver for S Alam power plant

The National Board of Revenue (NBR) has cancelled tax exemption facility for a power company owned by S Alam Group and also for foreign ocean-going ships.

It has issued two separate Statutory Regulatory Orders (SROs) by withdrawing the tax exemptions.

SS Power I Limited, a subsidiary of the S Alam Group, had been enjoying tax waiver, since March 2019, on its income derived from interest or fees from loans. The facility was valid for unlimited period.

As per SRO, the tax break would end on December 17, 2024.

The power generation company, located in Chattogram, also enjoyed extensive duty-free import of machinery and other equipment which hardly any tax paying entity enjoyed so far.

For foreign ocean-going ships, the tax benefit was valid until 2023.

In the latest SRO, the NBR revoked the facility on foreign earnings of Bangladeshi-flagged ocean-going ships.

From now on, ship owners will have to pay 3.0 per cent source tax on foreign currency earnings from services provided through their ships.

Currently, there are 100 Bangladeshi-flagged ocean-going ships.

Withdrawal of the tax benefit would generate Tk1.0 billion revenue in a year.

Earlier, import of Bangladeshi ocean-going ships was exempted from payment of taxes. There was 1.0 per cent tax on import of such ships.

[email protected]