NBR toughens through to power plants
The National Plank of Earnings (NBR) has tightened the rules regarding duty-free import power plant equipment in a bid to curb abuse of the privilege through import of materials in a roundabout way linked to power plant construction.
The revenue administration listed 20 items -- including steel sheet, rod, cement, household goods, office furniture, dredger, anchor boat and vehicles -- that are outside the purview of zero-duty import benefit for power plants, according to a notification issued towards the end of last week.
The list comes predicated on a recommendation from a panel formed by the NBR this past year as items as random as dredger, boulders, steel sheets and pipes were imported duty-free in the brand of power plant engineering.
This gave rise to fears of income loss among customs officials.
Subsequently, the earnings authority has made a decision to barricade items unrelated to power generation from the exemption benefit.
Since 1997 the customs authority has been offering the privilege to open public and private power making companies to import machinery, spare parts and resources needed for erecting the plants.
However, no specific set of products was talked about in the notification.
And in the lack of clarity, products not directly related to power plants were appearing imported by organizations based on suggestions from the Power Division.
"The new guidelines have already become impact," explained a senior official of the NBR on state of anonymity as he's not authorised to consult with the media.
And apart from the restriction of import items in a roundabout way linked to power plant supplies, the NBR in addition has eased guidelines to facilitate speedy let go of machinery and gear related to power plant life, he added.
In the notification, the earnings authority cancelled earlier orders relating to tariff privilege for attracting ability plant equipment from abroad and slapped the brand new conditions.
Public and personal companies will need to import plant and products before commercial creation of electricity starts and notify the energy division and customs about the commencement of power generation.
Once commercial production begins, power plant operators can import spare parts value up to 10 % of their import benefit duty-free for 12 years.
Erection products, machinery and extra parts that are actually imported on a momentary basis should be returned overseas within half a year of start of professional production.
And temporarily imported supplies can't be sold, rented or paid without repayment of import tariff and taxes, the notification added.
With a total generation capacity of 22,787 megawatts, Bangladesh now has 137 power crops and six of them have been put out to pasture.
Another 50 plant life are under-construction, in line with the latest total annual report of the power division
The federal government is building 16 of these, whose combined generation capacity will be 8,745MW.
Exclusive sector players are building the additional 34, whose total generation capacity will be 6,404MW.
