Spl tax benefit for LPG use, poultry planned
Thursday, 19 May 2011
Doulot Akter Mala
The National Board of Revenue (NBR) is set to offer special tax benefit for encouraging use of liquefied petroleum gas (LPG) and to revamp poultry sector in the upcoming budget following recent instruction of the finance minister. Officials said the finance minister in a note instructed the revenue board to consider tax incentives to poultry and LPG cylinder. Poultry sector demanded continuation of the tax holiday facilities until 2025 and withdrawal of 5.0 per cent tax on import of poultry feed while LPG industries sought tax cut on LPG cylinder, impose tax on import of cylinder and its raw materials. LPG industries have grown up significantly following local demands due to shortage of piped gas for household use. Four largest LPG manufacturing companies are producing LPG cylinders in the country including Basundhara steel, T.K LP gas cylinder manufacturing company, Jamuna spacetek joint venture ltd and Sunderban industrial complex ltd. LPG cylinder manufacturing association of Bangladesh in a letter to the finance minister demanded imposition of higher tax on import of LPG cylinder to help the local industries. The association said the government recently waived all types of Value Added tax (VAT) on import of LPG cylinder and fixed only 3.0 per cent customs duty on it. "The government should waive tax on import of raw materials of LPG cylinder and other taxes to help the local industries sustain in the competition with imported cylinders," the letter said. Currently, the country's demand for gas is 2500 million cubic feet per day (mmcft) against supply of 2000 mmcft. The government last month suspended providing piped gas for household use. The government is also familiarising the use of LPG for household to reduce pressure on natural gas. Poultry association president Syed Abu Siddique said the government recently announced extension of tax holiday facility until 2013 while it is necessary to extend it at least up to 2025 for poultry sector. He said 30 per cent of the poultry industry hit hard by bird flu need subsidies to recoup their loss. A senior income tax official said they have found some abuse of the tax benefit offered for poultry and agricultural sector. Some profitable industries shift their profit to those sectors to conceal actual income and enjoy the reduced tax benefit, he said.
The National Board of Revenue (NBR) is set to offer special tax benefit for encouraging use of liquefied petroleum gas (LPG) and to revamp poultry sector in the upcoming budget following recent instruction of the finance minister. Officials said the finance minister in a note instructed the revenue board to consider tax incentives to poultry and LPG cylinder. Poultry sector demanded continuation of the tax holiday facilities until 2025 and withdrawal of 5.0 per cent tax on import of poultry feed while LPG industries sought tax cut on LPG cylinder, impose tax on import of cylinder and its raw materials. LPG industries have grown up significantly following local demands due to shortage of piped gas for household use. Four largest LPG manufacturing companies are producing LPG cylinders in the country including Basundhara steel, T.K LP gas cylinder manufacturing company, Jamuna spacetek joint venture ltd and Sunderban industrial complex ltd. LPG cylinder manufacturing association of Bangladesh in a letter to the finance minister demanded imposition of higher tax on import of LPG cylinder to help the local industries. The association said the government recently waived all types of Value Added tax (VAT) on import of LPG cylinder and fixed only 3.0 per cent customs duty on it. "The government should waive tax on import of raw materials of LPG cylinder and other taxes to help the local industries sustain in the competition with imported cylinders," the letter said. Currently, the country's demand for gas is 2500 million cubic feet per day (mmcft) against supply of 2000 mmcft. The government last month suspended providing piped gas for household use. The government is also familiarising the use of LPG for household to reduce pressure on natural gas. Poultry association president Syed Abu Siddique said the government recently announced extension of tax holiday facility until 2013 while it is necessary to extend it at least up to 2025 for poultry sector. He said 30 per cent of the poultry industry hit hard by bird flu need subsidies to recoup their loss. A senior income tax official said they have found some abuse of the tax benefit offered for poultry and agricultural sector. Some profitable industries shift their profit to those sectors to conceal actual income and enjoy the reduced tax benefit, he said.