The National Board of Revenue (NBR) wants to reduce tax benefits on the import of goods that are also being produced locally to bring down dependency.
“We aren’t in such a situation where we have to be dependent on foreigners for everything,” NBR Chairman Abu Hena Md Rahmatul Muneem said at a pre-budget meeting organised by the revenue board on Sunday.
He added that the duty-free import facility provided in Export Processing Zones (EPZ) in the country will also be reduced.
“When the law was enacted many benefits were given blindly. Because then there was no local industry. Now the local industry has grown. We facilitated foreign investors. But there is no end to their demand,” he said.
“We will review the facilities, we will squeeze. We will not give facility for importing things like office stationery, chairs. Why quality materials for pre-fabricated buildings should not be available in the country, why wooden chairs should be imported from abroad,” the NBR chairman added.
However, he added they will work to make the business process easy and consider giving reasonable tax benefits.
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.
Currently, investors get duty-free benefits for importing several goods if companies have investments in the EPZs.
Abu Hena Md Rahmatul Muneem said that the facility of bonded warehouses will be given to more sectors.
“It will be possible to expand it once the ongoing bond automation programme is completed. If this facility is given before automation, there is an opportunity for misuse,” he said.
Regarding the separation of implementation from tax policy, he said, “I don’t understand what it means.” Implementation is not possible without knowledge of law. I will still study.”
Participating in the discussion, Business Initiative Leading Development (BUILD) Chief Executive Officer Ferdaus Ara pointed out that tax officials have the discretionary power to create fear among taxpayers.
Senior officials of the NBR were present during the meeting.
