Tax exemption offered for purchase in 7 tech-based sectors
The government has sought to increase tax holiday benefits to seven new sectors from another fiscal year to inspire expansion of making activities, according to tax measures proposed by Finance Minister AHM Mustafa Kamal for the fiscal year 2020-21.
The tax breaks will be wanted to investors who will setup plants to make electric transformers, artificial fibre or manmade fibre, automobile parts and components, also to produce automation and robotics items, the minister said in the spending budget speech today.
Establishment of sectors for artificial cleverness, nanotechnology-based products developing, aircraft maintenance companies and making of parts may also come beneath the tax exemption gain, in line with the Finance Bill 2020.
Income, profits and benefits from industries to come to be set up between your first moment of July 2019 and the 30th day of June 2024 will be exempted from tax payable for the time at specified rates, according to tax law.
Currently, the federal government offers tax exemptions for periods of five to a decade, depending on the positioning of the factories to be set up by entrepreneurs.
With the help of seven sectors, the total number of professional sectors permitted enjoy tax exemptions has increased to 33, including developing of active pharmaceutical ingredients, agriculture machinery, automobile, computer hardware, tyre and textile machineries.
In the very beginning of the current fiscal year 2019-20, the federal government previous included six new sectors to inspire making of goods, namely cellular phone, home appliances, LED television, toys and recycling of plastics in its list of sectors for tax exemption.
