Tax Holiday Incentives for Industries in Bangladesh

Bangladesh offers significant tax holiday incentives to encourage industrial growth and attract investment in key sectors. These provisions, outlined within the nation’s tax regulations, aim to stimulate economic development by providing considerable tax relief to qualifying businesses. This article details the eligible industries, the conditions for availing these benefits, and how they vary based on geographical location.

Eligible Industries for Tax Holiday

To qualify for a tax holiday, a company must be engaged in specific industrial activities. The government has identified a diverse range of sectors to promote economic diversification and technological advancement. These eligible industries include, but are not limited to:

       v  Active pharmaceutical ingredients and radio pharmaceuticals

       v  Agricultural machinery

       v  Automation

       v  Automobiles

       v  Artificial fiber manufacturing

       v  Artificial intelligence-based system design and manufacturing

       v  Automobile parts and components manufacturing

       v  Automation and robotics design, manufacturing, including its parts and components

       v  Aircraft heavy maintenance service, including spare parts manufacturing

       v Basic components of electronics (e.g., resistors, capacitors, transistors, integrated circuits, printed circuit boards)

       v Battery and its spare parts

       v Bio-fertilizer

       v Bio-technology based agricultural products/agro product

       v Boilers and its spare parts and equipment

       v Compressor and its spare parts

       v Computer hardware

       v Furniture

       v Fish processing and preservation

       v Home appliances (e.g., blender, rice cooker, microwave oven, electric oven, washing machine, induction cooker, water filter)

       v Insecticides and pesticides

       v Leather and leather goods

       v LPG cylinder

       v Locally produced fruits and vegetables processing

       v Mobile phone

       v Nanotechnology-based product manufacturing

       v Petrochemicals

       v Pharmaceuticals

       v Plastic recycling

       v Textile machinery

       v Tissue grafting

       v Toys manufacturing

       v Transformer manufacturing

       v Tissue grafting, development of bio-physics and development of radio active (diffusion) application etc. (i.e., polymer modification or polymer processing or fiber modification or medical equipment sterilization)

       v Any other sector or industrial enterprise or entity performing any other work, as specified by the National Board of Revenue (NBR), through government gazette notification

Conditions to Avail Tax Holiday

To be eligible for these tax incentives, businesses must meet certain criteria:

Location: The approved industrial undertaking must be located in Bangladesh .

Commencement of Production: The entity must commence commercial production between July 2020 and June 2025 .