NBR plans policy changes to check misuse of bond facilities
To battle duty evasion exercised in bonded warehouse facilities the government has detected the incapacity in the existing system to deal with this. Thus, before the next fiscal, the NBR has planned initiatives to ensure bonded warehouse facilities are not extended to regular imports. It has planned to reduce or withdraw VAT on the items under this facilities. Only the 5% duty will be kept and the 15% VAT will be abolished.
The misuse is attributed 70% to ready-made garments and 30% to backward linkage industries. In the commencing nine months of fiscal 2015-16, the government lost Tk341 crore, which was 10 times higher than entire fiscal FY14-15. The industries in spotlight are 15 backward linkages, consisting of paper and plastic companies.
NBR official stated that 30 companies will lose bond licensing facilities due to irregularities. Further investigations are ongoing.
To battle duty evasion exercised in bonded warehouse facilities the government has detected the incapacity in the existing system to deal with this. Thus, before the next fiscal, the NBR has planned initiatives to ensure bonded warehouse facilities are not extended to regular imports. It has planned to reduce or withdraw VAT on the items under this facilities. Only the 5% duty will be kept and the 15% VAT will be abolished.
The misuse is attributed 70% to ready-made garments and 30% to backward linkage industries. In the commencing nine months of fiscal 2015-16, the government lost Tk341 crore, which was 10 times higher than entire fiscal FY14-15. The industries in spotlight are 15 backward linkages, consisting of paper and plastic companies.
NBR official stated that 30 companies will lose bond licensing facilities due to irregularities. Further investigations are ongoing.
No comments:
Post a Comment