The government has set a 20% income tax on the earnings of companies manufacturing refrigerators, freezers, air conditioners, compressors, and motorcycles, including their spare parts.
This information was disclosed in a notification signed by National Board of Revenue (NBR) Chairman Abdur Rahman Khan on Wednesday, January 8.
According to the notification, the 20% income tax rate will apply to the income earned from the business of manufacturing complete freezers, refrigerators, motorcycles, air conditioners, and compressors, including spare parts. Currently, such industries are paying a 10% tax on their income.
The notification includes several conditions, such as:
- The industrial company must be registered under the Companies Act, 1994.
- The company must comply with the provisions of sub-sections (5) and (6) of section 76 of the Income Tax Act, 2023, along with other applicable regulations.
- The company must have the capability to produce its own molds and dies.
- The company must have its own polyurethane foaming plant, powder coating plant, and active waste management plant.
- The company must be approved by the NBR and should not be formed through the restructuring or division of an existing business, or through the transfer of machinery or structures from an existing business in Bangladesh.
The notification also mentions that the NBR can withdraw its approval if any company fails to meet the specified conditions.
Currently, these industries are paying a 10% tax on their income and a 2% advance income tax (AIT) on the import of machinery, parts, and materials. This was initially intended to remain in effect until 2032.
