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... But in the last few decades the industrialization is emerging and these days a very high portion of national revenue is dependent on the various types of industries. ... Tax Holiday benefit is one of those incentives. ...
The county was one of the major exporters of textiles, silk and sugar till the eighteenth century but the industrialization process was subsequently halted during the 200 years of colonial exploitation. ... These include provision for setting up export processing zones in the private sector, initiatives to set up new EPZs in the public sector, tax holiday for export-oriented industries, scope for 100 percent foreign investments and repatriation of profits. ...
The problem has been defined as “Tax Holiday vis-à-vis Industrialization in Bangladesh”. ...
The main objective of this study is to identify the progresses in the industries in Bangladesh and the impact of different incentives – specially tax holiday benefit - provided by the government for industrialization. ... The government incentives like tax holiday can play a key role for expansion of industries as well as provide inspiration to he entrepreneurs. ... 1 Tax Holiday: Conceptual Issues
Tax Holiday is an incentive provided by the government to facilitate further development of industries in the country as well as to insist the entrepreneurs to invest in less prioritized sectors or less developed zones. Specified industrial undertaking is eligible for tax holiday, which fulfills some defined conditions.
Tax holiday is allowed to industries subject to the relevant rules and procedures set by the National Board of Revenue (NBR). ... The period of such tax holiday is calculated from the month of commencement of commercial production. The eligibility of tax holiday is to be determined by the NBR and the commencement of production is certified by the respective sponsoring agencies. ...
The various classes of industries specified by the National Board of Revenue for the purposes of exemption under tax holiday scheme (S. ... 2 Factors to be considered for Tax Holiday
Under section 45 (2A), (2B) specified industrial undertaking is eligible for tax holiday, which fulfills the following conditions:
1. ... The undertakings set up between the first day of July, 1974 and the thirtieth day of June, 1985 (both days inclusive) are also eligible for tax holiday upon fulfillment and subject to the conditions as set forth in sections 45 (1) & 45 (2). ... That it must apply in the prescribed form to the Board within 180 days of the date on which the commercial production starts, for its approval for tax holiday. ...
Under section 46A, period of tax holiday has been further extended for 5 years in respect of industrial undertaking, Tourist industry or Physical infrastructure facility subject to the following conditions:
1. ... That the said undertaking is engaged in –
i) the manufacture of goods or materials or the subjection of goods or materials to any such process or the exploration and extraction of mineral resources and processing of agricultural products;
ii) providing, on commercial basis, physical infrastructure facility;
iii) tourist industry as defined in the explanation to section 46 of the Income Tax Ordinance, 1984. ... Quantum of investment shall be reduced by the amount of dividend if any, declared by the company enjoying tax exemption. ... If the undertaking enjoying tax holiday makes any commercial transaction with another undertaking or company having one or more common sponsor directors and if, at the time of assessment, the Deputy Commissioner is satisfied that the undertaking has purchased or sold goods at a price which is higher or lower than the market price and the undertaking has done the same with the intent of reducing the income of another undertaking or company, the tax holiday will be deemed to have been withdrawn for that assessment year. ... Dividend distribution tax under section 16D will not be exempt under this section. ... 3 Withdrawal and Cancellation of Tax Holiday Scheme
A tax holiday scheme for an industry can be cancelled or withdrawn for the following reason:
1. ... 0 INDUSTRIALIZATION FRAMEWORK IN BANGLADESH
4. ...
For sustained growth and poverty reduction, the Government would pursue a globally competitive industrialization strategy dictated by the dynamic comparative advantage of the country. This means an employment-intensive industrialization with emphasis on small and medium enterprises (SMEs) and export-oriented industries. ...
The ongoing process of reforming customs and improvements in VAT and income tax administration would be accelerated and sustained through appropriate reorganization of the National Board of Revenue (NBR). ... in VAT, wealth tax and provisions for tax holiday), the fiscal policy would be tailored to provide support to SMEs. ... In 1986 the government announced a comprehensive revision of its industrial policy, setting out objectives and strategies to accelerate the pace of industrialization. ... Zone enterprises enjoyed a tax holiday of 5 years (10 years for pioneer industries), subsequent rebate of 50 percent of income tax on export sales, freedom from duties on both imports and exports, and guaranteed full repatriation of profits and capital. ... Based on the recommendation of the BSCIC, the National Board of Revenue will provide tax holiday to appropriate small and cottage industries. ... Income tax exemption for ten years and 500 per cent income tax rebate on export earning after that period;
2. ... Income tax exemption, subject to existing conditions on salaries of foreign technicians, for three years;
4. Tax exemption interest on foreign loans;
5. Tax exemption on royalties, technical know-how and technical assistance fees;
6. Tax exemption on profits on account of transfer of shares by foreign companies listed with the Stock Exchange;
7. ...
The goal of external competitiveness implies the pursuit of industrialization in accordance with the dynamic comparative advantage of the economy. ...
Industrial Policy aims at addressing these concerns building on earlier efforts and gains towards industrialization of Bangladesh economy. ... To ensure a process of industrialization which is environmentally sound and consistent with the resource endowment of the economy. ... Tax holiday facilities will be available for five or seven years depending on location of the industrial enterprise. The current provisions regarding tax holiday period by location is shown in the Annexure-IV. Tax holiday facilities will be provided in accordance with the existing laws. The period of such tax holiday will be calculated from the month of commencement of commercial production. Tax holiday certificate will be issued by NBR for the total tax holiday period within ninety days of submission of application. ... Industrial undertakings not enjoying tax holiday will enjoy accelerated depreciation allowance. ... Value added tax (VAT) is not payable for import of capital machineries and spares. ... An Entrepreneur will not be required to pay transfer fee and/or capital gain tax in case(s) he wants to use his/her own land to establish a new enterprise (duly registered with the BOI) under his/her ownership or wants to convert his/her existing enterprise into a "limited company" without changing the ownership structure. ... Measures will be taken to create industrial fund in the Bangladesh Bank, strengthen specialized Banks, establish country fund, expand capitulate market, create venture capital and rationalize tax holiday system.
Approximate Word count = 7710
Approximate Pages = 30.8
(250 words per page double spaced)
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