NBR for reducing tax benefits on certain imports

Staff Reporter :
The National Board of Revenue (NBR) unlikely to provide duty-free import facility for the country’s manufacturers before completion of bond automation.
“It will be possible to expand the bonded warehouses facility before the ongoing bond automation programme is completed. If this facility is given before automation, there is an opportunity for misuse,” said NBR Chairman Abu Hena Md Rahmatul Muneem while speaking at a pre-budget discussion arranged by the revenue board on Sunday.
He further said that they are planning for reducing duty benefits on imported goods, which are also being produced in the country, in order to cut dependency.
“Besides, the facilities given to foreign investors will be reduced too,” he said, adding that the duty-free import facility provided in Export Processing Zones (EPZ) in the country will also be cut down.
Muneem said, “When the law was enacted many benefits were given blindly as there were a few local industries during that time. Now the local industry has grown. We facilitated foreign investors. But there is no end to their demand.”
“We will review the facilities and will squeeze. We will not give facility for importing goods like office stationery, chairs,” he added.
“Why quality materials for pre-fabricated buildings should not be available in the country, why wooden chairs should be imported from abroad,” he asked.
Currently, investors get duty-free benefits for importing several goods if companies have investments in the EPZs.
He, however, said that they would work to make the business process easy and consider giving reasonable tax benefits for the investors.
Bangladesh Export Processing Zone Authority, (BEPZA) Bangladesh Economic Zone Authority (BEZA), and Bangladesh Investment Development Authority (BIDA) proposed various facilities during the meeting to increase foreign investment. The NBR chairman urged BEPZA, BEZA, and BIDA to look at the macroeconomy perspective.
Participating in the discussion, Business Initiative Leading Development’s (BUILD) Chief Executive Officer Ferdaus Ara pointed out that tax officials have the discretionary power to create fear among taxpayers and also urged to take measures to remove audit fear among the taxpayers. She placed 12-point proposals for NBR’s consideration in preparing the upcoming budget for 2023-24 for the sake of further expansion of the country’s industrial sectors.
The proposals including amendment of article 82c of Income Tax Ordinance 1984 for removing dual taxation complexities, full-fledged automated tax system, separation of tax policy, and collection authority, withdrawal of advance tax at import stage for industrial IRC users.
The BUILD also proposed for introduction of ‘SME VAT’ instead of turnover tax, duty-free facility for importing raw materials for the partial exporters, formation of a new entitlement policy and setting up a central bonded warehouse to facilitate the exporters.