NBR gives tax exemption to services, products, staff

Doulot Akter Mala | Published: August 02, 2016 00:00:00 | Updated: February 01, 2018 00:00:00

National Board of Revenue (NBR) has offered tax exemption to different services, imported products, and income of employees and consultants of Rooppur Nuclear Power Plant (NPP) to expedite its implementation.
Contractor companies of the project will be able to enjoy the tax exemption on their bills and imported items upon complying with some conditions, tagged by the tax authority with the facility.
Foreign workers, including employees of the Russian implementing agency, and consultants will be able to enjoy the income tax exemption during the project period.
As per the existing income tax law, foreign employees are required to pay income tax at a rate of 30 per cent on their income.
However, Bangladeshi subcontractors, to be appointed by the Russia's state-run Atomstroyexport, will not be able to enjoy the tax exemption. They have to pay income tax as per the existing rules.Â Â Â Â Â
Imported products for the Rooppur NPP must have to be certified by Bangladesh Atomic Energy Commission (BAEC).
Internal Resources Division (IRD) issued two separate Statutory Regulatory Orders (SROs), dated July 28 and signed by its senior secretary Md Nojibur Rahman, in this regard.
Imported products, equipments, services and documents, in the name of BAEC, will be exempted from income tax. Tax at source on contractors or suppliers' bills related to implementation of the project has also been exempted. However, the sub-contractors of the project have to be appointed by the Russian company.
According to the Income Tax Ordinance 1984, there is 5.0 per cent tax on import of equipments for projects and up to 7.0 per cent tax on contractors' bills.
IRD, however, tagged four conditions against the tax exemption facility. Import bill, project implementation bill and suppliers' bill of the power plant must be certified by BAEC.
The tax exemption will be valid during the NPP construction period. Other import bill, suppliers' bill or contractors' bill, which are not relevant with the power plant, will not be entitled to enjoy the tax exemption.
Earlier, NBR's Value Added Tax (VAT) Wing offered tax waiver on six locally-procured services for the power project.
On July 26, Bangladesh has signed an $11.38 billion credit deal with Russia to implement the country's first-ever NPP at Rooppur in Pabna with 2,400 MW capacity.
Earlier, the Russian government approved a deal to provide loan up to $11.38 billion to build the plant. The NPP project will be implemented at an estimated cost of $12.65 billion.
Of the amount, $11.38 billion will come from Russia. Bangladesh will also provide $1.265 billion for implementation of the main project in eight years, beginning from August 2017. It is expected to be completed by 2022-23.
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