NBR offers duty exemption to hi-tech park developers

Doulot Akter Mala | Published: December 13, 2015 00:00:00 | Updated: February 01, 2018 00:00:00

The National Board of Revenue (NBR) has offered duty exemption to help investors import products for developing hi-tech parks.
Hi-tech park developers will now be able to get exemption from all types of import duty, regulatory duty, supplementary duty and value added tax (VAT), subject to some conditions.
To this effect, the NBR issued a Statutory Regulatory Order (SRO) on December 6.
The revenue board has tagged three conditions for the park developers to enjoy the facility. The developers must have VAT registration number to import products duty free for the parks. Also, the names of products, their description and quantity must be approved and certified beforehand by the hi-tech park authority.
However, construction materials available in Bangladesh including MS rod/bar, cement, pre-fabricated building and iron/steel sheet will not get duty exemption.
Also, materials that are not directly used in construction and development of hi-tech parks will not be entitled to enjoy the facility.
Import of office equipment, air conditioners, refrigerators, passenger vehicles, home appliances and other similar types of products will not be entitled to enjoy duty exemption.
Earlier, the government offered 10-year income tax-exemption facility to attract foreign investors to hi-tech parks.
Currently, the Hi-tech Park is being set up at Kaliakoir in Gazipur district, only 40km away from the capital city.
The proposed park will be built on 232 acres of land at a cost of over US$ 207 million.
Talking to the FE, Bangladesh Hi-tech Park Authority (BHTPA) managing director Hosne Ara Begum said such a financial incentive is considered a 'milestone'.
The benefit will encourage entrepreneurs to invest in hi-tech parks, she said, adding, "The knowledge-based high-tech park will generate employment and help the government earn revenue."
Kaliakoir Hi-tech Park, she said, will generate employment for 60,000 to 70,000 people on completion of the first phase by next 10 years.
Meanwhile, the NBR issued a separate SRO imposing regulatory duty (RD) on copper bars, copper plates and copper tubes.
At present, import of those products requires to pay 10 per cent customs duty. The customs wing imposed 15 per cent RD on copper bars, 10 per cent RD on copper plates and 15 per cent RD on copper tubes.
doulot_akter@yahoo.com