03 June 2021 21:15:01
June 04, 2021, 8:17 a.m.
The government has exempted the home appliance industry from value added tax or VAT in order to reduce reliance on foreign products.
In the 2021-22 fiscal year budget unveiled on Thursday, the government included a VAT exemption on locally manufactured blenders, juicers, blenders, grinders, electric kettles, rice cookers, multicookers and pressure cookers.
Washing machines, microwave ovens and electric ovens made in Bangladesh will also benefit from the VAT exemption, reports bdnews24.com.
The exemption from the advance tax on raw materials of iron products, ship waste and ethylene glycol, terephthalic acid, ethylene propylene will help companies to manufacture PVC and PET resins, used in imitation leather cartons, paints and adhesives, or fibers for clothing, containers for liquids and foods, and thermoforming for manufacturing.
Finance Minister AHM Mustafa Kamal has also proposed a VAT exemption on fresh fruit and the manufacture of puffed rice.
To maintain the current growth momentum of local industries, he proposed to maintain the facilities for exemption from VAT on the manufacture of LPG cylinders, refrigerators, freezers and their compressors, polypropylene staple fibers, air conditioners. and their compressors, cars and motor vehicles.
To facilitate business, the Minister of Finance has proposed a series of measures, including a reduction in the advance tax on the import of raw materials for industries to 3.0% against 4.0%.