Advance tax cut by 1pc for import of raw materials for industries
DHAKA, June 03, 2021 (BSS) – Industrial entrepreneurs will have to pay one percent less ‘Advance Tax’ for import of raw materials for industries to reduce tax burden for the industrial entrepreneurs of Bangladesh.
“To reduce tax burden for the industrial entrepreneurs of Bangladesh, I propose to decrease Advance Tax (AT) from 4 (four) percent to 3 (three) percent for import of raw materials for industries,” said Finance Minister A H M Mustafa Kamal while placing the national budget for fiscal year (FY) 2021-22 today at Jatiya Sangsad.
To make business easier, he proposed some measures to mitigate functional and procedural complication in the Value Added Tax and Supplementary Duty Act, 2012 and Value Added Tax and Supplementary Duty Rules, 2016.
The finance minister also proposed necessary amendment in the related section to facilitate the existing benefit of rebate by the exporters.
“To make the law easier for the stakeholders, I propose to amend the definition of “Representative”, “Increasing adjustment” and “Decreasing adjustment”. In case of registration of non-resident person, I propose to amend the related section,” he added.
He said VAT rate of export of service is zero percent. “I propose to replace the existing section of the Act to make that clear in the law”, he added.
He also proposed to consider invoice issued by Bank, Insurance Company and Port as VAT challan.
“To make the section related to ‘VAT deduction at source’ congruent with the VDS rule, I propose necessary amendment,” he added.
To make the law easier for business, he proposed amendment in the section related to decreasing adjustment of VAT.