• Wednesday, Jul 17, 2019
  • Last Update : 04:11 pm

NBR relaxes advance tax provision till June 30

  • Published at 09:49 pm June 22nd, 2019
web-nbr-National Board of Revenue (NBR)
The delay from the NBR has the market stakeholders in jitters Dhaka Tribune

Exporters and importers of capital machinery, among others, will also enjoy the deferred payment facility

National Board of Revenue (NBR) has relaxed the provision of advance tax (AT) payment proposed in the budget for 2019-2020 fiscal year for importing goods of some government, semi-government organizations and different other sectors till June 30.

NBR on Thursday issued a guideline in this regard, which said that the selected importers could release their imported products without paying AT but they must sign a stamp of Tk300, promising to pay the AT later.

Exporters and importers of capital machinery, among others, will also enjoy the deferred payment facility, the guideline adds.

The budget for 2019-2020 proposed the advance tax at 5% rate for all the imported products, instead of previous advance trade vat (ATV) which was applicable only for commercial products.

Finance Bill, 2019 said the AT would be effective from June 13, the day the budget was placed  before the parliament. 

The guideline instructed all field level customs and VAT officials to comply with the latest instructions.

Government, semi-government, autonomous bodies, UN organizations, embassies, government project offices, privileged persons and tax-exempted organizations and others will be able to release their imported products with the deferred payment facility.

Export-oriented industries having bonded warehouse licences and individual exporters will also get the facility, the guideline says.

Among others, traders who import capital machinery, cotton, polyester yarn, viscose yarn, power producing equipments and spare parts will enjoy the facility.

However, NBR officials say some trade bodies and businesspeople have criticized the newly imposed 5% AT, triggering the authority to revise the provision for an interim period.