The tax holiday scheme, which was scheduled to end at June 2015, to be extended to June 2019 with a view to create an investment friendly atmosphere for industrialization and economic progress.
Along with the facility, the Finance Minister AMA Muhith, with his budget speech also proposed reinstating the facilities of accelerated depreciation alternative to tax holiday for new industrial entrepreneurs.
The government also proposed area wise tax rebate with the proposed budget.
According to the proposal, tax rebate for the industrial undertakings is not eligible for tax holiday facilities set up in the least developed areas, will enjoy 10% tax rebate till June 30, 2019.
Tax rebate for the industrial undertakings not eligible for tax holiday facilities set up between July 1, 2014 and June 30, 2019 in the least developed areas, will be 20% up to 10 years next from the date of commencing, the proposal added.
The minister also proposed 20% tax rebate for the industrial undertakings shifted to least developed areas between July 1, 2014 and June 30, 2019 up to 10 years next from the date of commencing commercial operation after shifting.
Meanwhile, the government also extended tax holiday facilities in the least developed areas.
Tax holiday facility both for the industrial undertakings enjoying tax holiday facilities and eligible for tax holiday facilities set up in between July 1, 2014 to June 30, 2019 in the least developed areas is extended from 7 years to 10 years.