The National Board of Revenue has relaxed the condition for the local air conditioner manufacturers for availing exemption of value-added tax in a bid to promote production of air conditioners in the country, officials of NBR said. The revenue board has reduced by 50 per cent the number of machinery an air conditioner manufacturing factory must possess for getting VAT exemption at production stage, and raw materials and spare parts import level, they said.
The NBR on February 6 amended the existing statutory regulatory order in this connection.
According to the SRO, an industry having at least 17 machinery related to air conditioner production will be considered as an air conditioner manufacturing plant.
Earlier, a plant needed to have a total of 31 machinery to be considered as an air conditioner manufacturing factory.
Any such plant will get exemption from paying VAT at the stages of production and import of raw materials and spare parts, it said.
Officials of the revenue board said that the government amended the rules following an application of Jamuna Group as it is planning to manufacture air conditioner in the country.
Currently, Walton Hi-Tech Industries Ltd is manufacturing air conditioner of the brand name Walton.
According to the SRO, an air conditioner manufacturing plant will have to have machineries such as plastic injection molding machine, power press machine, hydraulic press machine, ultrasonic welding machine, shearing machine, milling machine, vertical expander machine, tube bending machine, air compressor, ETP, power coating plant, vertical machining center, electric discharge machine, wire straightening and cutting machine, lathe machine, heat treatment furnace, heat treatment oven and psychometric treatment machine for availing the benefit.
If any unit has no heat treatment furnace, heat treatment oven and psychometric treatment machine in its premise, it will have to have an arrangement with other plants or companies for getting the services given by these machines, it said.
Among other conditions for enjoying the exemption, the plant will have to make at least 30 per cent value addition.
A committee formed by the NBR will inspect the plant to examine if the applicant fulfilled the conditions for getting the exemption.
-With New Age input
