Hi tech park-based cos may get 10 years' tax holiday
Friday, 21 May 2010
Mehdi Musharraf Bhuiyan
The government is considering granting 10 years' tax holiday to companies willing to invest in hi tech park as part of the state's proposed incentives for wooing investors in the mega technology hub now under construction.
Simultaneously, the local and foreign entities based in the Hi-Tech Park would also get 50 percent tax exemption for five additional years' after expiry of their scheduled tax holiday period, concerned officials informed.
The Ministry of Science and ICT has recently drafted a package of incentives for the prospective investors in the technology park and is now waiting for the go-ahead from other concerned government authorities to finalise the proposed terms and conditions.
The first phase of the billion dollar project based in Kaliakoir of Gazipur was completed in March this year and now the formation of a Hi-Tech Park Authority and the appointment of a private developer for construction and development are under process.
"We have already drafted a list of package incentives that we would like to offer to the companies willing to invest in Hi-tech Park", said Deputy Secretary of MoSICT A N M Safiqul Islam who is the former Hi-tech Park Project Director.
"We would like to sit with other relevant government bodies including Board of Investment (BoI) and National Board of Revenue (NBR) to decide whether the proposed incentives will be best suited to the ongoing park project", he added.
Under the current provision, all industries based in eight Export Processing Zones (EPZ) under BEPZA is enjoying tax holiday for a period of 10 years in addition to a number of other incentives.
"Now the government is considering the same investment facilities for the Hi-tech Park based companies in addition to the 50 percent tax exemption to be offered for an extended five years' period", Safiqul said.
"Also, if the exempted money of the additional five years' period is reinvested in some other ventures within Bangladesh, the new venture would enjoy the same tax holiday facilities", he added.
A number of overseas entities including MI3 of USA and MSC-TC of Malaysia have shown their interest in investing in the Hi-Tech Park project as park developer, sources said.
There are indications however that the government is more interested in going for a tender process to choose the appropriate candidate- officials said, adding that the total amount of money that needs to be invested by the park developer may cross Tk. 7.0 billion.
Earlier in March this year, 'The Bangladesh Hi-Tech Park Authorities Bill 2010' was passed in the Jatiya Sangsad, paving the way for creaaating a separate high powered body to manage and woo investment for the specialised industrial parks.
Once the Authority becomes operational, all the existing IT Park, IT Village, Technology Park and Science Park would come under the same governing body, officials informed.
The country is set to have a series of technology parks in various parts of the country over the next decade in a bid to attract large scale foreign investment in the highly potential hi-tech sector.
The government is considering granting 10 years' tax holiday to companies willing to invest in hi tech park as part of the state's proposed incentives for wooing investors in the mega technology hub now under construction.
Simultaneously, the local and foreign entities based in the Hi-Tech Park would also get 50 percent tax exemption for five additional years' after expiry of their scheduled tax holiday period, concerned officials informed.
The Ministry of Science and ICT has recently drafted a package of incentives for the prospective investors in the technology park and is now waiting for the go-ahead from other concerned government authorities to finalise the proposed terms and conditions.
The first phase of the billion dollar project based in Kaliakoir of Gazipur was completed in March this year and now the formation of a Hi-Tech Park Authority and the appointment of a private developer for construction and development are under process.
"We have already drafted a list of package incentives that we would like to offer to the companies willing to invest in Hi-tech Park", said Deputy Secretary of MoSICT A N M Safiqul Islam who is the former Hi-tech Park Project Director.
"We would like to sit with other relevant government bodies including Board of Investment (BoI) and National Board of Revenue (NBR) to decide whether the proposed incentives will be best suited to the ongoing park project", he added.
Under the current provision, all industries based in eight Export Processing Zones (EPZ) under BEPZA is enjoying tax holiday for a period of 10 years in addition to a number of other incentives.
"Now the government is considering the same investment facilities for the Hi-tech Park based companies in addition to the 50 percent tax exemption to be offered for an extended five years' period", Safiqul said.
"Also, if the exempted money of the additional five years' period is reinvested in some other ventures within Bangladesh, the new venture would enjoy the same tax holiday facilities", he added.
A number of overseas entities including MI3 of USA and MSC-TC of Malaysia have shown their interest in investing in the Hi-Tech Park project as park developer, sources said.
There are indications however that the government is more interested in going for a tender process to choose the appropriate candidate- officials said, adding that the total amount of money that needs to be invested by the park developer may cross Tk. 7.0 billion.
Earlier in March this year, 'The Bangladesh Hi-Tech Park Authorities Bill 2010' was passed in the Jatiya Sangsad, paving the way for creaaating a separate high powered body to manage and woo investment for the specialised industrial parks.
Once the Authority becomes operational, all the existing IT Park, IT Village, Technology Park and Science Park would come under the same governing body, officials informed.
The country is set to have a series of technology parks in various parts of the country over the next decade in a bid to attract large scale foreign investment in the highly potential hi-tech sector.