National Board of Revenue (NBR) has temporarily exempted three local coir felt products from the existing Value Added Tax (VAT).
The three products made of coconut husk are-coir mattress, coir tape and coir felt.
Considering the growing potentiality of the industry, the NBR made the waiver to further boost the export of the three items.
Coir fiber is a natural fiber extracted from coconut husk, which is used in production of different products including mattresses, brushes and doormats.
Bangladesh also exports the products to many countries, particularly to the European countries.
On January 27, the VAT wing of NBR had issued a special order signed by its Chairman Nojibur Rahman in this connection.
The producers will not have to pay VAT on production of coir mattress, coir tape and coir felt till November 17, 2016, reads the NBR order.
However, they have to get VAT registration number and will have to file VAT returns regularly to avail the benefit, it mentioned.
The revenue authorities decided to waive VAT on coir felt products immediately after a request made by Awami League lawmaker from Bagerhat-2 constituency Mir Showkat Ali Badsha, according to officials.
In a recent letter to NBR, Badsha said: “If the VAT waiver decision is taken, it will help several coir-based non-traditional factories in Bagerhat and other southern districts to flourish.”
“The producers are exporting their coir-made products to different countries,” he added.
