The National Board of Revenue will not collect value-added tax from World Food Programme when the agency buys biscuits from local manufacturers for distributing to students free of cost in various public and private schools in Bangladesh.
According to the agreement between the Bangladesh government and the WFP, local tariffs and taxes will be waived when the organisation purchases food items from local manufacturers, said a circular issued by the NBR.
WFP has already made agreements with eight big companies for buying 4,000 tons of biscuits this time.
However, the NBR stipulates that the eight companies must keep a record in their income tax returns of how many biscuits they have supplied without VAT.