Tax holiday scheme likely to be extended to woo investors

The government is likely to extend the tax holiday scheme for another couple of years aiming at enhancing investment and creating employment opportunities, said NBR officials. In the current financial year 2013-14, the government extended the scheme from June 2013 to June 2015. Finance minister AMA Muhith during his budget speech for the FY14 had said that the extension came with a view to providing incentives to new industries and creating employment berths.
But, he had commented that he was in favour of gradually and proportionately lowering the facilities based on the years of tax-holiday period. ‘This step would not only benefit the entrepreneurs but also bolster revenue gradually.’
According to the NBR officials, the government is considering the extension as it wanted to increase the investment in the country for attaining 7.3 per cent GDP in the FY15.
The current investment scenario in the country is not up to the mark and that’s why the government wanted to give a signal to the investors by extending the tax holiday system for a couple of years, a senior NBR official told the news agency.
‘If the scheme is extended for a couple of years, the investors will get confidence and come to invest without any fear. If the scheme is offered just for a year, it won’t encourage the investors. That’s why we’re thinking of offering the scheme for a longer period,’ he said.
The official added that the finance minister might announce the decision in his budget speech on June 5.
While having a pre-budget discussion with leading economists of the country on March 27, Muhith had said that the government would focus on bringing a momentum in overall investment in the coming fiscal year as he thought the ‘sluggish investment’ trend was the ‘weakest side’ of the government in the last five years.
‘Investment was very limited (in last 5 years). We want to take a big initiative in this area. It’s a very difficult target, but we must do it at any cost,’ he had said.
The finance minister had said the private sector investment did not increase in the last five years, which is the lifeline of the economy. ‘We need to look into it why the domestic investment remained so low.’
The investment-to-GDP ratio stagnated at 24-25 per cent for nearly a decade and the government wants to raise the investment-to-GDP ratio to 32 per cent for having a higher economic growth.
‘We’ll focus on how to increase the total investment, how to obtain more foreign direct investment and most importantly, how to improve the quality of the administration.’
Meanwhile, both the World Bank and the International Monetary Fund have prescribed the government for an end to tax holiday facilities to increase revenue earnings.
The IMF told the government that tax holiday facilities reduce the equity and legitimacy of the tax system and contribute to the public’s cynical attitude towards the tax system by eroding the civic responsibility to pay taxes.
The NBR, however, referred to the similar tax holiday systems in India, Pakistan, Sri Lanka and Indonesia where the system has been contributing to industrial growth.
A tax holiday is a temporary reduction or elimination of a tax. The government usually creates tax holidays as incentives for business investment.
In the developing countries, the governments sometimes reduce or eliminate corporate taxes for the purpose of attracting foreign direct investment or stimulating growth in selected industries.
The tax holiday facility has been in Bangladesh soon after the independence of the country, according to NBR officials. It is available for five to seven years depending on location of the certain industrial enterprise.
The industries that enjoy the facility are textile, textile machinery, jute goods, high value garments (overcoats, jackets and suits), pharmaceuticals, melamine, plastic products, ceramics, sanitary ware, steel from iron ore, mild steel rod, corrugated iron sheet, fertiliser, insecticide, pesticide, computer hardware, compressors, basic raw materials of drugs and chemicals.
Agro-processing, shipbuilding and diamond cutting also enjoy the tax holiday benefit.
Of the physical infrastructure industries, sea or river port, container terminal, internal container depot, container freight station, liquefied natural gas terminal and transmission line, compressed natural gas terminal and transmission line, gas pipeline, flyover, mono rail, underground rail, telecommunication other than mobile phone, large water treatment plant and export processing zones are entitled to the facility.
In the tourism industry, residential hotels having facility of three stars or more enjoy the benefit.

-With New Age input

Related News

Islami Bank wins ICMAB Best Corporate Award 2021

Business Desk : dhakamirror.com Islami Bank Bangladesh Limited IBBL won the ICMAB Best Corporate Award 2021 for “Private Commercial Bank (Islamic Operation)”. Commerce Minister Tipu Munshi handed over the award to Muhammad Qaisar Ali, additional managing director of the bank Thursday (1 December) at a ceremony held at Hotel InterContinental Dhaka. JQM Habibullah, additional managing ... Read more

Brac Bank holds fire safety awareness sessions during Fire Service Week

Business Desk : dhakamirror.com To observe Fire Service Week, Brac Bank held a fire safety awareness event for its people in conjunction with the Fire Service and Civil Defence Department. The bank arranged a fire safety drill at its head office in Dhaka on 17 November, said a press release. The department observes Fire Service ... Read more

Premier Cement Mills PLC obtains ICMAB ‘Gold Award’ for cement manufacturing

Business Desk : dhakamirror.com Once again, Premier Cement Mills PLC has taken home the Gold in the Cement Manufacturing category at the ICMAB Best Corporate Award 2021. Mohammed Amirul Haque, managing director of Premier Cement Mills PLC, received the award from Commerce Minister Tipu Munshi at a city hotel on 1 December.  Among others Federation ... Read more

IPDC Finance took home “gold” for ICMAB Best Corporate Award 2021

Business Desk : dhakamirror.com IPDC Finance was honored with the Gold Award in the NBFI category at the ICMAB Best Corporate Award 2021. The awards event took place on Thursday, December 1 at the Intercontinental Dhaka, said a press release issued in this regard. Commerce Minister Tipu Munshi handed over the awards to the recipients as ... Read more

Agora, BD Recycle Technologies to work on solid-waste management 

Business Desk : dhakamirror.com Agora Limited has recently joined hands with BD Recycle Technologies Limited (BRTL) to work together with the goal of ensuring sustainable solid-waste management. A memorandum of understanding has been signed in this regard, where these two institutions will work towards environmental protection through modernisation of waste management, reads a press release. ... Read more

ICMAB Best Corporate Award goes to 65 firms

Business Desk : dhakamirror.com A total of 65 businesses were awarded the “Best Corporate Award 2021” by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) for their efforts in establishing corporate governance. After examining each company’s annual report, the ICMAB presented them with honors Thursday night at a local hotel during its annual ... Read more

Meghna Bank to avail mobile financial solution platform

Business Desk : dhakamirror.com Meghna Bank recently signed a tripartite agreement with ModeFinServer Private and Genex Infosys at the bank’s head office in Gulshan, Dhaka to avail a mobile financial solution platform from the former and provide logistics and localisation support from the latter.  Sohail RK Hussain, managing director of Meghna Bank, Amarnath Chowdhury, managing ... Read more

Citibank NA appoints New Country Officer in Bangladesh

Business Desk : dhakamirror.com Citibank NA Bangladesh recently appointed a new country officer.  The appointee, Md Moinul Huq, joined Citibank NA in 2002 and previously worked for Al Baraka Bank and Dhaka Bank, said a press release. As country officer, Huq will lead the Citi franchise in Bangladesh and will be responsible for Citi’s business ... Read more

Shwapno establishes new outlet at Aftabnagar Siraj Convention Centre

Business Desk : dhakamirror.com A new outlet of the retail shop Shwapno was inaugurated at the Siraj Convention Centre in Aftabnagar, Dhaka. An event was held to mark the occasion on Tuesday noon, reads a press release issued in this regard. The programme was attended by landowner Md Siraj, Shwapno Head of Retail Administration Saiful ... Read more

Rezina Parveen becomes DMD of Agrani Bank

Business Desk : dhakamirror.com Rezina Parveen was recently appointed as the Deputy Managing Director of Agrani Bank Limited. She formerly held the position of General Manager at Janata Bank, where she gained both respect and success, before moving on to Agrani Bank. She served as acting CEO of Janata Capital and Investment Limited, which is ... Read more

Janata Bank assists Bangladesh Kabaddi Federation financially

Business Desk : dhakamirror.com Janata Bank Limited recently gave money to the Bangladesh Kabaddi Federation to help them set up an independent welfare fund to pay for injured players’ medical bills. A press release says that Abdus Salam Azad, MD and CEO of Janata Bank and Vice-President of Bangladesh Kabaddi Federation, gave the donation check ... Read more

Two-day ‘Bima Mela’ was organized at Barishal

Rupali Insurance demonstrated the most innovative customer service during the event. Business Desk : dhakamirror.com On the 24th and 25th of November, 81 property, casualty, and life insurance companies displayed their products during the two-day “Bima Mela 2022” in Barishal. Visitors were happy to take part in a variety of games and activities organized by ... Read more

MTB Foundation and Buet provide student scholarships

Business Desk : dhakamirror.com The Bangladesh University of Engineering and Technology (Buet) and the Mutual Trust Bank (MTB) Foundation recently held a “Saifuddin Ahmed Chowdhury Memorial Scholarship” program at the Buet academic council bhaban in Dhaka. The programme aims to provide funds on a monthly basis to 33 students of 12 departments, said a press ... Read more

Jamuna Bank Foundation holds free plastic surgery camp

Business Desk : dhakamirror.com A free plastic surgery camp for cleft lip, palate, and burn patients was held at Munshiganj General Hospital by Jamuna Bank Foundation. Specialized doctors from the Netherlands provided treatment during the camp, reads a press release. Local government Tazul Islam attended the camp as the chief guest. Chairman of Jamuna Bank ... Read more

Disney Star and Beximco Digital Distribution reach broadcast agreement in Bangladesh

Business Desk : dhakamirror.com Beximco Digital Distribution Limited (BDDL), a concern of Beximco Group has signed a deal with Disney Star to distribute eight of their popular entertainment television channels across Bangladesh via paid television service through cable, IPTV, and OTT. The collaboration will see BDDL distribute Disney Star’s channels in the original languages of ... Read more

6 Organizations and 5 Individuals get Best CSR Awards 2022

Business Desk : dhakamirror.com Six organizations and five individuals were recognized with “A Better Tomorrow CSR Awards 2022” for making positive contributions to society through various projects. The awards were presented by Planning Minister Abdul Mannan at a ceremony held at Le Meridian Dhaka in the capital, according to a press release. The Daily Star ... Read more

Nagad gets two MasterCard Excellence Awards 2022

Business Desk : dhakamirror.com The Postal Department’s Nagad mobile financial service won the “Mastercard Excellence Award 2022” for its digital innovation in Bangladesh’s financial industry. According to a press release, Nagad won its second online award for its outstanding merchant business contributions. Mastercard recently held the “Mastercard Excellence Award 2022” ceremony in Dhaka’s five-star hotel ... Read more

Rupali Bank made Tahmina Akhter DMD

Business Desk : dhakamirror.com Rupali Bank Limited has appointed Tahmina Akhter to the position of Deputy Managing Director (DMD). The Financial Institutions division of the Ministry of Finance issued a circular in this regard recently, reads a press release.  Before joining as DMD, she successfully served as general manager in the same bank. Tahmina Akhter ... Read more

Asian Banker named Islami Bank as ‘Strongest Bank’

Business Desk : dhakamirror.com Singapore-based banking and financial intelligence platform The Asian Banker has named Islami Bank Bangladesh the “Strongest Bank in Bangladesh” and the “Strongest Islamic bank in Bangladesh” for 2022. Foo Boon Ping, the platform’s managing editor, announced this on Thursday through a virtual platform which was joined by Mohammed Monirul Moula, managing ... Read more

1000th sub-branch of IFIC Bank opens in Meherpur

In an effort to create the most extensive and technologically advanced banking network in the country, IFIC Bank has inaugurated its 1000th sub-branch in Mujibnagar, Meherpur. The bank’s chairman and Adviser on Private Industry and Investment to the Prime Minister Salman F Rahman and State Minister for Public Administration Farhad Hossain was present as the ... Read more