CNG filling stations, conversion units may get 8-yr tax holiday
Wednesday, 12 March 2008
FE Report
The National Board of Revenue (NBR) is actively thinking of offering tax holiday facility for a period of eight years to CNG filling and conversion stations to encourage investment in the sector.
"The proposal of tax holiday placed by the association concerned might be considered positively," NBR chairman Abdul Mazid said in a pre-budget discussion meeting with the stakeholders in automobiles and transport (land and waterway) sector Tuesday.
In the wake of global oil price hike and increased awareness about the use of environment friendly fuel, the dependence on CNG-run vehicle has increased substantially in recent times.
Industry insiders said the government should take some effective measures for the next five years to encourage the expansion of CNG sector and help reduce dependence on imported fuel and thereby save precious foreign exchange.
CNG-run vehicle owners have been facing problems as they have to wait in long queues due to small number of CNG filling stations, they said.
A total of 210 CNG filling stations and 111 conversion stations are presently operating across the country. Another 21 stations being in the pipeline are expected to start operation within a short time, according to Bangladesh CNG Association statistics.
In 2001, the government allowed installation of CNG filling stations in the private sector.
Only seven CNG stations were established between 1983-2001. But the number increased to 203 until 2007, the statistics said.
In the pre-budget discussion meeting with the NBR, the CNG filling and conversion station owners demanded of the government to allow duty-free import of conversion kits, cylinders and other equipment by conversion stations.
A total of 25 associations of the automobile and transportation sector attended the meeting and proposed different measures for inclusion in the budget for next fiscal year.
Experts from the Dhaka University of Engineering and Technology (DUET) and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) also spoke on the occasion.
DUET professor Anwarul Azim said: "The NBR should have a research and technical wing to monitor obstacles to the implementation of various measures taken by it from time to time."
FBCCI director Manjur Ahmed said: "Public and goods transport sector should be declared as 'thrust sector' to facilitate trade and commercial activities."
He also proposed for imposition of specific duty on vehicles to expedite unloading of the same at the Chittagong port.
The National Board of Revenue (NBR) is actively thinking of offering tax holiday facility for a period of eight years to CNG filling and conversion stations to encourage investment in the sector.
"The proposal of tax holiday placed by the association concerned might be considered positively," NBR chairman Abdul Mazid said in a pre-budget discussion meeting with the stakeholders in automobiles and transport (land and waterway) sector Tuesday.
In the wake of global oil price hike and increased awareness about the use of environment friendly fuel, the dependence on CNG-run vehicle has increased substantially in recent times.
Industry insiders said the government should take some effective measures for the next five years to encourage the expansion of CNG sector and help reduce dependence on imported fuel and thereby save precious foreign exchange.
CNG-run vehicle owners have been facing problems as they have to wait in long queues due to small number of CNG filling stations, they said.
A total of 210 CNG filling stations and 111 conversion stations are presently operating across the country. Another 21 stations being in the pipeline are expected to start operation within a short time, according to Bangladesh CNG Association statistics.
In 2001, the government allowed installation of CNG filling stations in the private sector.
Only seven CNG stations were established between 1983-2001. But the number increased to 203 until 2007, the statistics said.
In the pre-budget discussion meeting with the NBR, the CNG filling and conversion station owners demanded of the government to allow duty-free import of conversion kits, cylinders and other equipment by conversion stations.
A total of 25 associations of the automobile and transportation sector attended the meeting and proposed different measures for inclusion in the budget for next fiscal year.
Experts from the Dhaka University of Engineering and Technology (DUET) and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) also spoke on the occasion.
DUET professor Anwarul Azim said: "The NBR should have a research and technical wing to monitor obstacles to the implementation of various measures taken by it from time to time."
FBCCI director Manjur Ahmed said: "Public and goods transport sector should be declared as 'thrust sector' to facilitate trade and commercial activities."
He also proposed for imposition of specific duty on vehicles to expedite unloading of the same at the Chittagong port.