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Firefighting tools import exempt from AT

Staff Correspondent
14 Jan 2023 00:00:00 | Update: 14 Jan 2023 09:04:04
Firefighting tools import exempt from AT

The importers will be exempted from paying the advance tax on imports of firefighting equipment as the provision of exemption from such tax on the import has remained unchanged.

The National Board of Revenue (NBR) made a clarification in this regard on Thursday as confusion has been created at field level offices over the Statutory Regulatory Order (SRO) issued on May 24, 2021.

“There was an advance tax exemption on the import of firefighting equipment subject to certain conditions according to SRO issued on June 3, 2021. The conditions were addressed in another SRO issued on June 3, 2020,” the clarification reads.

But the department concerned amended the conditions through an amendment to customs order and the SRO issued on May 24, 2021. When the VAT department issued the exemption SRO in June 2021, it did not separately add the amended issues. So, confusion arose regarding the deduction of advance tax at import level.

According to NBR officials, the customs also collect advance tax from multiple companies.

A senior official of VAT department under the NBR said that they requested the revenue board to clarify the issue after confusion arose regarding the deduction of advance tax on an import consignment at Chattogram Customs House recently.

Later, NBR said the company would enjoy exemption from advance tax on the import of above-mentioned products.

According to the Fire Fighting Equipment Business Owners Association of Bangladesh, the sector is totally dependent on imported products as local entrepreneurs are yet to show interest in manufacturing such products.

Safety equipment is imported mostly from China, the United Arab Emirates, the United Kingdom, the United States, Malaysia and some European countries. Nearly 80 per cent of security equipment are brought in from China and the rest from Malaysia and some European countries.

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