Bangladesh is now focusing mostly on export oriented businesses and it is gaining significant success. Currently, promotion of export oriented business is the first priority of the government of Bangladesh.
Companies exporting at least 80% of their products or services are to be considered as export oriented businesses. These products also include IT-related goods. The following fiscal and non fiscal incentives are to be provided to bring 100% export oriented businesses:
i. Tax free machinery and spare parts importing
ii. A flat rate has been established for any exportable item and it is duty free
iii. 90% credit against non negotiable sale agreements
iv. A prescribed rate for all ready made garment industries and other raw material using export oriented industries
v. Export oriented businesses will have the facility to handle a certain amount of foreign currencies
vi. Export-oriented cottage industries will be 100% free from income tax
vii. Importing banned/ reserved raw materials will be allowed
viii. Jute products will be considered as export oriented business
ix. Tax free import of raw materials will be offered till a certain limit
x. The export credit assurance scheme will be made stronger
** All facilities mentioned above shall be provided to all export oriented industries.
Once an industry has been identified as ‘Export Oriented Industry”, it enjoys the governments ‘Venture Capital’ facilities. The tax and duty assessment process will continue and be made easier. Reduced rate for utility services (electricity, gas, water and sewerage connection) will be applied for all 100% export oriented businesses.
Companies exporting at least 80% of their products or services are to be considered as export oriented businesses. These products also include IT-related goods. The following fiscal and non fiscal incentives are to be provided to bring 100% export oriented businesses:
i. Tax free machinery and spare parts importing
ii. A flat rate has been established for any exportable item and it is duty free
iii. 90% credit against non negotiable sale agreements
iv. A prescribed rate for all ready made garment industries and other raw material using export oriented industries
v. Export oriented businesses will have the facility to handle a certain amount of foreign currencies
vi. Export-oriented cottage industries will be 100% free from income tax
vii. Importing banned/ reserved raw materials will be allowed
viii. Jute products will be considered as export oriented business
ix. Tax free import of raw materials will be offered till a certain limit
x. The export credit assurance scheme will be made stronger
** All facilities mentioned above shall be provided to all export oriented industries.
Once an industry has been identified as ‘Export Oriented Industry”, it enjoys the governments ‘Venture Capital’ facilities. The tax and duty assessment process will continue and be made easier. Reduced rate for utility services (electricity, gas, water and sewerage connection) will be applied for all 100% export oriented businesses.
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