Tax on capital machinery import might be withdrawn

KMA Hasnath: A planning is underway to withdraw the proposed advance tax (AT) on capital machinery import for the development of country’s industries sector in 2019-2020 fiscal year.  

According to the new VAT act, five percent advance tax on capital machinery import to be effective from next July month. As a result, the industrial entrepreneurs will have to pay 5% import tax on capital machineries.  

Finance Minister AHM Mustafa Kamal will place the finance bill at the National Parliament on Saturday. Meanwhile, the imposed advance tax on capital machinery import would be withdrawn, concerned sources said.

Sources said that if the new act becomes effective then the advance tax will be imposed on around 6,500 goods. The businessmen have to take the tax money paying VAT return. So, the traders will have to count bank interest in between this time. As a result, the price of these imported goods and machineries will be increased. Ultimately, the consumers will face impact directly.

risingbd/Dhaka/Jun 28, 2019/Hasnath/Nasim