BANGLA MUSIC & MP3
BD CHILD ADOPTION
CANADIAN TV & RADIO
SCHOOLS OF TORONTO
TORONTO BUSINESS DIRECTORY
TORONTO HOSPITAL DIRECTORY
WORLD TV & RADIO
JOB SEARCH ENGINE
SMS & RING TONE
QUIZ & PUZZLE
GAME & VIDEO
MUSLIM BABY GIRL NAME
MUSLIM BABY BOY NAME
HEALTH & FITNESS
DOMAIN FOR SALE
BUY OR SELL FOR FREE
SUBMIT YOUR SITE
JOKE & COMIC PAGE
BANGLADESH SMALL COTTAGE
INDUSTRIES CORPORATION (BSCIC) :
BSCIC was created through an Act of Parliament in 1957 which was later amended in 1992. It provides a package of services to private sector entrepreneurs in the small and cottage industries sector. Small industries are defined as those engaged in manufacturing or processing or service activities whose total fixed investment is limited to Tk. 30 million (US$ 0.75 million), while cottage industries are those engaged in manufacturing or servicing and generally run by family members with a total investment limited to Tk. 0.5 million (US$ 12500) only.
BSCIC also provides assistance in all other matters relating to development and expansion of small and cottage industries (SCI). Its major functions are as follows - Promotion and registration of small and cottage industries
- Conducting advisory and industrial promotion services including training of entrepreneurs, skill development of artisans and craftsmen, creation of jobs for SCIs etc.
Bangladesh Export Processing Zones Authority
(BEPZA) : The Bangladesh Export Processing Zones Authority (BEPZA) was established to set up and operate export processing zones (free zones) in Bangladesh under the Bangladesh Export Processing 7,ones Authority Act, 1980. To begin with, it was decided that the country would have 3 export processing zones in phases, one each in the port cities of Chittagong and Khulna and one air transportation based zone near the Zia International Airport at Dhaka. BEPZA develops and services special areas where potential investors would find a congenial investment climate free from procedural complications.
The policy making body of the Bangladesh Export Processing Zones Authority (BEPZA)) is its Board of Governors chaired by Head of the Government. The Board consists of Ministers and Secretaries of several relevant MinistrieslDivisions. Any decision taken by the Board of Governors is deemed to be the decision of the government. For carrying out the day to day functions including implementation of the Boards decisions, there is an Executive Board of BEPZA consisting of an Executive Chairman and 3 members.
The Chittagong Export Processing Zone (CEPZ) established in 1983, has till June 1994 sanctioned 85 industries with a proposed investment of US$146 million of which 66 are wholly foreign owned or joint ventures and the remaining 19 are owned by domestic entrepreneurs. 52 industries are already in operation with an investment of US$ 105 million.
The Dhaka Export Processing Zone (DEPZ), created in 1993, has till the middle of 1994 sanctioned 17 industries with a proposed investment of US$ 53 million of which 13 are wholly foreign owned or are joint ventures and 4 are owned by domestic entrepreneurs. 5 units with an investment of US$ 0.5 million, are already in operation.
Total exports from BEPZA industries stood at US$ 76.6 million in 1991-92 and US$127.6 million in 1992-93.
Incentives and Facilities for Private
General Incentives for both Foreign and Local Investors
Tax Holiday : Tax holiday is allowed to industries subject to the relevant rules and procedures set by the National Board of Revenue (NBR). Presently, it is allowed for 5, 7, 9 and 12 years for industries set up in the developed, less developed, least developed and special economic zones respectively. 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.
Accelerated Depreciation : Accelerated depreciation in lieu of tax holiday is allowed at the rate of 80 percent of actual cost of machinery or plant from the year the unit starts commercial production and 20 percent for the following year, if the industry is located in the developed area. If the unit is set up in a less developed area, the rate of depreciation is 100 percent.
Concessionary Duty Imported Capital Machinery : Import duty at the rate of 7.5 percent ad valorem is payable on capital machinery and spares imported for initial installation or for BMR/BMRE of existing industries. The value of spare parts should not, however, exceed 10 percent of the value of the machinery. Out of this 7.5 percent rate of duty payable. Export-oriented industries and industries located in the under-developed areas, may enjoy a further concession of the import duty in the following manner For 100 percent export-oriented : No import duty or any other tax is payable industries
Export-oriented industries in : Effective rate of duty 5 percent (Industries developed areas exporting minimum 70 percent of the total annual production may submit a bank guarantee to the customs authority for 33.33 percent of the total import duty payable at the rate of 7.5 percent ad valorem. This bank guarantee will be returned after installation of the machinery and fulfilling the conditions of export. In this case effective rate of import duty payable is 5 percent ad valorem).
Other industries in developed : Effective rate of duty 7.5 percent areas
Export-oriented industries : Effective rate of duty 2.5 percent (Export outside developed areas oriented industries, as mentioned above, located in under-developed areas may also submit a bank guarantee to the customs authority for 33.33 percent of the total import duty. In addition to this they may submit another bank guarantee for 33.33 percent of the total import duty payable at the rate of 7.5 percent ad valorem for being located in an under-developed area. These bank guarantees (33.33 percent plus 33.33 percent) will be returned after installation of the machinery and fulfilling the condition of export. In this case effective rate of import duty payable is 2.5 percent.
Other industries outside : Effective rate of duty 5 percent (all other developed areas industries located in under developed areas other than export-oriented, may submit a bank guarantee to the customs authority for 33.33 percent of the total import duty payable at the rate of 7.5 percent ad valorem. This bank guarantee will also be returned after installation of the machinery. In this case, the effective rate of import duty is 5 percent ad valorem).
Value Added Tax (VAT) is not payable for imported capital machinery and spares. Tariff Rationalization : Products of local industries are protected through tariff rationalization, keeping in view the interest of entrepreneurs and consumers. Tariff protection is allowed upto 4 years to the new industries. There is Tariff Commission to prescribe protective rate where necessary.
Incentives to Non-Resident Bangladeshis : Special incentives are provided to encourage non-resident Bangladeshis for investment in industries. Non-resident Bangladeshi investors will enjoy facilities similar to those of foreign investors. Moreover, they can buy newly issued shares/debentures of Bangladeshi companies. Furthermore, they can maintain Non-resident Foreign Currency Deposit (NFCD) account for upto 5 years.
Rationalization of Import Duty : Duties and taxes on import of goods which are produced locally will be higher than those applicable to import of raw materials for producing such goods
Other Incentives :
- Exemption of tax on interest of foreign loans ;
- Exemption of tax on royalty, technical know-how and technical assistance fees, etc ;
- Liberal investment allowance for tax assessment ;
- Import of machinery under supplier's credit or pay-as-you-earn (PAYE) scheme on approved terms ;
- Availability of long term credit facilities on liberal debt-equity ratio from industrial financing institutions (development finance institutions, nationalized commercial banks and private commercial banks) ;
- Income tax exemption of foreign technicians employed in approved industries for a period of 3 years ;
- Remittance of 50 percent of the salary of foreign nationals employed in approved industries ;
- Remittance of savings from earnings, retirement benefits and personal assets of individuals on retirement/termination of services ; and
- Remittance of approved royalties, technical know-how and technical assistance fees.
ALL YOU NEED TO KNOW ABOUT BANGLADESH: