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.
Published : 07 Jun 2018, 04:57 PM
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.”