Automobiles, tyre industries to get 10-yr tax holiday

The government is likely to provide tax holiday benefit to some sectors including automobiles and tyre industries from the upcoming national budget to facilitate industrialisation in the country, officials of the finance ministry said.

Japan Tokyo Motor ShowThey said that the proposed tax holiday facility would encourage setting up the import substitute manufacturing plants in the country which would create new employment opportunities as well as save foreign currency through reducing dependence on import.

Finance minister AMA Muhith might declare the benefits for 10 years for the sectors in the budget documents to be placed before parliament on next Thursday.

The tax holiday facility may also be provided for the bicycle and tunnel brick kiln technology sectors.

The sectors will be included in the Article 46 of Income Tax Ordinance-1984 under which newly established industrial undertakings were provided tax exemption for 10 years.

Local and foreign investors have been demanding the tax holiday facility for the sectors as some domestic and foreign companies have come forward to set up automobiles and tyre industries in the country.

Bicycle industry has also become one of the potential export-oriented sectors in the country.

Chittagong-based PHP Group has already taken an initiative to assemble and gradually go into production of Malaysian Proton cars in the country.

The initiative may be launched by the end of this year.

On the other hand, India and South Korea based car manufacturers have also expressed keen interest to invest in Bangladesh.

State-owned Pragoti has already started assembling of Mitsubishi jeep and microbus in the country.

Currently, around 15,000 cars are imported from Japan and some other countries. Of which, more than 70 per cent are reconditioned cars.

Officials of the finance ministry said that automobiles manufacturing industry would be able to change the scenario.

Indian CEAT tyre company is also going to set up a tyre manufacturing plant in the country.

The decision of providing tax holiday facility will also encourage other companies to invest in the sectors, they said.

-New Age