Priority INDUSTRIES
Units to be set up by 2019 to get depreciation facility for machines
Prioritised industries to be set up in the next five fiscal years in the country will enjoy accelerated depreciation allowance for machinery and plant from the date of their commercial production. According to the Finance Bill-2014 which the finance minister, Abul Maal Abdul Muhith, placed before parliament on Thursday, machinery and plant to be used in prioritised industries to be set up in the country between July, 2014 and June 2019 will get the facility.
The depreciation on the actual cost of plant and machinery which were not previously used in the country will be allowed within three years of commercial operation, officials of the National Board of Revenue said.
Office appliances and road transport vehicles will not be allowed for the depreciation allowance.
Entrepreneurs will get fifty per cent depreciation of the actual cost of plant and machinery in the first year of commercial production.
According to the Income Tax Ordi nance-1984 a total of 18 industrial sectors will get the facility.
Thirty per cent depreciation will be allowed in the second year while the remaining 20 per cent will be provided in the third year of commercial production.
Entrepreneurs will be allowed to show the actual cost of plant and machinery in their income tax return as admissible expenses.
They, however, will have to fulfil some conditions for getting the depreciation allowance.
The conditions include the industrial undertakings should be owned and managed by a Bangladeshi company or a body formed in pursuance of an act of parliament having its registered office in Bangladesh.
The industries are of active pharmaceuticals ingredient and radio pharmaceuticals, barrier contraceptive and rubber latex, basic chemicals or dyes and chemicals, basic ingredients of electronic industry, bio-fertiliser, biotechnology, boilers, compressors, computer hardware, energy efficient appliances, insecticide or pesticide, petro-chemicals, pharmaceuticals, processing of locally produced fruits and vegetables, radio-active application industry, textile machinery, tissue grafting and brick made of automatic hybrid Hoffmann Kiln technology.
-With New Age input
