Foreign workers in expressway project get income tax waiver

Foreign workers in the Dhaka elevated expressway project will enjoy three years' tax exemption on their income received as salary and allowance from the project.
The tax exemption will be considered to be effective from August 14, 2015 to 2018.
Foreigners, who will work in the project, will enjoy the tax exemption until 2018, said a senior tax official.
The revenue board issued the SRO giving priority to smooth implementation of the project, he said.
"The issue of tax exemption for foreign workers was not mentioned in the agreement signed between the government and the foreign contractor company," he added.  
However, the SRO, issued on December 01, was issued with retrospective effect.  
"Foreigners working in Dhaka elevated expressway under Public-Private Partnership will enjoy three years' exemption from payment of income tax on their salary and allowances that they receive from the project," the SRO, signed by NBR chairman Md Nojibur Rahman, said.
Officials said the tax exemption has been offered to expedite work of the elevated expressway and encourage exchange of technical know-how from the foreign experts.
Under the existing Income Tax Ordinance, foreign workers have to pay 30 per cent income tax on their annual income. There is no tax-free ceiling for foreigners in the income tax law.
The Bangladesh Bridge Authority (BBA) is the executing agency of the Dhaka Elevated Expressway which may cost US$1.2 billion. The government will bear 27 per cent of the project cost.
Thailand-based company Italian-Thai Development Public Company is the contractor of the project.
Prime Minister Sheikh Hasina inaugurated the 20- kilometre expressway in April 2011. Its first phase runs from airport to Banani, second from Banani to Moghbazar and the third from Moghbazar to Kutubkhali.
The expressway may be partially opened in 2019. Some 10 per cent work has been completed so far.  
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