Govt includes eight new areas for tax holiday
Tuesday, 10 June 2008
The government has included eight new areas for tax holiday although it admitted that availing the tax holiday is not the only factor the entrepreneurs consider while setting up industries, reports UNB.
The newly included areas for tax holiday proposed in the new national budget are agro-processing, diamond cutting, steel production from billet, jute industries, different units of textile sector, underground rail, monorail, and telecom infrastructure except mobile phone.
To encourage the entrepreneurs, the government has decided to continue in a modified form with its tax holiday scheme for the industries set up between July 1, 2008 and June 30, 2011.
In his budget speech, the finance adviser proposed the following tax holiday scheme:
-- For industries set up in Dhaka and Chittagong (except three Hilly Districts) Division - 100 percent of income for first two years; 50 per cent of income for next two years; and 25 per cent of income for next one year;
-- For industries set up in Rajshahi, Khulna, Sylhet and Barisal Divisions and three Hilly Districts - 100 percent of income for first three years; 50 per cent of income for next three years; and 25 per cent of income for next one year;
The adviser also proposed to continue with the regulation on accelerated depreciation until June 30, 2010 that was supposed to end on June 30, 2008.
The newly included areas for tax holiday proposed in the new national budget are agro-processing, diamond cutting, steel production from billet, jute industries, different units of textile sector, underground rail, monorail, and telecom infrastructure except mobile phone.
To encourage the entrepreneurs, the government has decided to continue in a modified form with its tax holiday scheme for the industries set up between July 1, 2008 and June 30, 2011.
In his budget speech, the finance adviser proposed the following tax holiday scheme:
-- For industries set up in Dhaka and Chittagong (except three Hilly Districts) Division - 100 percent of income for first two years; 50 per cent of income for next two years; and 25 per cent of income for next one year;
-- For industries set up in Rajshahi, Khulna, Sylhet and Barisal Divisions and three Hilly Districts - 100 percent of income for first three years; 50 per cent of income for next three years; and 25 per cent of income for next one year;
The adviser also proposed to continue with the regulation on accelerated depreciation until June 30, 2010 that was supposed to end on June 30, 2008.