• Sunday, Sep 20, 2020
  • Last Update : 01:45 am

NBR slashes VAT on coal imports for power plants

  • Published at 11:24 pm December 4th, 2019
The National Board of Revenue (NBR) office in Dhaka Mehedi Hasan
The National Board of Revenue (NBR) office in Dhaka Mehedi Hasan/Dhaka Tribune

A statutory regulatory order (SRO) of the revenue board in this connection said the reduced vat rate would remain effective until June 30, 2025

The National Board of Revenue (NBR) on Wednesday slashed the value added tax (VAT) on coal import for power generation to 5% from the existing 15%.

A statutory regulatory order (SRO) of the revenue board in this connection said the reduced vat rate would remain effective until June 30, 2025.

The order, signed by the NBR Chairman Mosharraf Hossain Bhuiyan, said that to get the reduced vat rate at 5% the traders must submit a letter to customs declaring they would use the fuel only for power generation.

Importers, who import coal for other purposes, have to pay regular 15% VAT, the SRO elaborates.

The government cut the VAT at a time when three coal-based power plants in public sector and four in private sector were under construction and expected to go for production soon, said a senior NBR official.

A huge amount of coal would be required for the power plants, he added, saying that the VAT reduction would minimize electricity production costs, as the coal accounts for about 65% of the total cost.

Currently, there are no other duties on coal import.

The NBR earlier provided duty benefits on importing oil and liquefied natural gas for electricity generation.

55
54
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail