The National Board of Revenue (NBR) has announced VAT exemption for 10 services at export processing zones (EPZs).
The NBR, in a general order issued on Thursday, set some conditions for the companies to enjoy the facilities at sources, including VAT waiver on raw material collection.
According to the order, the exemption is being given to industries seeking services from natural gas, Wasa, electricity bill, port, freight, forwarding, clearing and forwarding agents, insurance company and shipping agents at the EPZs.
The order, signed by NBR First Secretary (VAT policy) Hasan Mohammad Tarek Rikabder, says the exemption will be enjoyed by companies situated at hundred percent export, potential export and export processing areas.
The NBR also states the conditions to get VAT waiver.
According to the condition list, the company will have to have its own meters and export documents for VAT exemption on gas and power. More than one company using a common meter will not be eligible for the facility.
The companies will have to apply by next 15 days after a month ends. To avail the facilities at ports, documents of respective EPZs will be required.
Besides, they have to present the membership certificate issued by the exporters' association.
The NBR official Tarek Rikabder said hundred percent exporting units were given these facilities in the national budget. Now the VAT exemption is offered for companies at EPZs with some terms and conditions.
The eight EPZs of Bangladesh have more than 2,500 industrial units. Among those, 527 companies enjoy the bond licence facility. The units annually export products worth around Tk65,000 crore.