NBR Scraps June 10 Decision
Local cos winning int'l bids to get VAT refund
Star Business Report
The National Board of Revenue (NBR) has backtracked from its earlier decision of retaining VAT (value-added tax) which local firms use to deposit with the authorities concerned after winning international tenders.Now the companies that supply goods or services in foreign currency through international bids will continue to get the 15 percent VAT refund. The facility was cancelled through a Statutory Regulatory Order (SRO) on June 10. Transformer, cables, pipes and angles manufacturers, light engineering firms and roads and highways construction firms were set to suffer heavily as they saw foreign companies getting edge over locals following the order. NBR sources yesterday said they have reverted to the earlier system with the consent of Finance Minister M Saifur Rahman following strong demands from the local firms, chambers and businessmen. "We have decided to restore the facility to encourage local manufacturers," said a senior NBR official. "With the decision we have acknowledged that the goods and services supplied through international bids are deemed to be export."
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