Dhaka, Bangladesh (BBN)- The government is switching to ‘progressive tax’ from the existing tax holiday system to give the manufacturing industry a fillip, Finance Minister Abul Maal Abdul Muhith said on Friday.
“We’ll say good bye to wholesale tax holiday this year except few sectors like power.we are switching to progressive tax,” he told newsmen after inaugurating an automatic refrigerator manufacturing unit of Walton at its factory at Chandra, Kaliakoir, Gazipur.
Member (VAT) of National Board of revenue (NBR) Farid Uddin, chairman of RB Group SM Nurul Alam Rezvi and managing director SM Shamsul Alam and managing director of Walton SM Ashraful Alam were, among others, present on the occasion.
Muhith said the concept of progressive tax has always been discussed in the country but it could not be introduced as yet.
Citing an example, he said the state-run Progoti has been enjoying tax holiday for over 40 years but it could not come out financially sound as yet.
Praising Walton for manufacturing all parts locally except compressor, Muhith said it should go for producing compressor also. “The big expansion of the Walton is that it can now make mold of a product. And this is the best initiative of the expansion of our local industry.”
Referring to the local companies especially Runner and Butterfly, the finance minister hoped that the country would be able to produce all parts of motorbikes soon.
BBN/SSR/AD-05Apr13-7:11 pm (BST)