Govt urged to withdraw VAT on repair of machines and tools
FE Report | Wednesday, 25 June 2008
Bangladesh Engineering Industry Owners Association (BEIOA) has urged the government to withdraw value added tax (VAT) proposed on the machinery repair services.
Local engineers manufacture light equipment for almost all types of industries and agricultural sectors and they also repair machines and tools.
For the first time, the government in its national budget for fiscal 2008-09 has proposed VAT on such services.
Speaking at a press conference Tuesday, BEIOA president Abdur Razzaque said: "Imposition of the VAT on the repair services does not match the concept of VAT rules and it will hurt the growing light engineering sectors badly."
The press conference was held in the city's Dhaka Reporters Unity (DRU) Tuesday.
"VAT is usually imposed at different production stages, not on repair works. The repairing services has been exempted from VAT since its inception in Bangladesh in 1991. But the present government proposed in the budget VAT, which will affect our sector." Razzaque added.
He suggested that the government could impose VAT on those repair works done usually through tender process.
BEIOA former president Khawza Abdul Hasim, BEIOA joint secretary Awlad Hossain and others were present on the occasion.
Local engineers manufacture light equipment for almost all types of industries and agricultural sectors and they also repair machines and tools.
For the first time, the government in its national budget for fiscal 2008-09 has proposed VAT on such services.
Speaking at a press conference Tuesday, BEIOA president Abdur Razzaque said: "Imposition of the VAT on the repair services does not match the concept of VAT rules and it will hurt the growing light engineering sectors badly."
The press conference was held in the city's Dhaka Reporters Unity (DRU) Tuesday.
"VAT is usually imposed at different production stages, not on repair works. The repairing services has been exempted from VAT since its inception in Bangladesh in 1991. But the present government proposed in the budget VAT, which will affect our sector." Razzaque added.
He suggested that the government could impose VAT on those repair works done usually through tender process.
BEIOA former president Khawza Abdul Hasim, BEIOA joint secretary Awlad Hossain and others were present on the occasion.