The National Board of Revenue (NBR), Bangladesh's apex authority for tax administration, has reportedly exempted the 7.5 per cent value-added tax (VAT) on local aluminium scraps and wastes procured by utensil-manufacturing companies. The news came after NBR issued a public notice informing the VAT exemption effective from Monday, June 26.
Officials said 7.5 per cent VAT on local wastes and scraps was imposed in 2012 as per the VAT and Supplementary Duty (SD) Act. But it has always been challenging to collect the tax as such products are collected with no official information. This is one of the reasons why NBR has waived the tax.
The other reason is to free aluminium utensils manufacturers from paying higher costs for raw materials, enabling them to sell the end products at affordable prices.
The National Board of Revenue also reduced VAT on ballpoint pens by 10 per cent. The newly implemented tax is 5 per cent, as proposed in the budget. It also offered tax benefits on the import of parts of light-emitting diode (LED) lamps and to local switch-socket manufacturers.
On the other hand, the VAT wing of NBR re-imposed 15 per cent VAT and 5 per cent advance tax on petroleum products imports, with effect from the same day.
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