Local mobile, motorcycle makers get boost in proposed budget

The local manufacturers of mobile handsets and motorcycles received a boost as Finance Minister AMA Muhith proposed VAT exemptions on local production, and imposed surcharge on imported devices.

In proposing the record budget on Thursday in parliament, Muhith said the exemptions were needed for the “development and protection of some domestic industries”.

“Mobile phone has a very important role to play in spreading information technology-enabled services. In order to help the mobile manufacturing industry flourish and attract investment, I am proposing to issue a separate SRO allowing the VAT exemption facility on mobile telephone set manufacturing,” he said.

“In addition, I am proposing to exempt surcharge on mobile manufacturing and to impose 2 percent surcharge on the import of mobile handsets. 

“I would also like to propose to exempt local motorcycle manufacturers from VAT to attract more investments and boost exports.”