18 June 2019
BANGLADESH: Budget Raises Smartphone Import Duty and Extends Tax Holiday Scheme
The customs duty on imported smartphones is to be raised from 10% to 25%. This revision forma part of the 2019 budget review and will come into effect on 1 July, the first day of the country’s new financial year. The customs duty rate for all other mobile phone handset categories will remain at 10%.
Among the other changes introduced in the budget is a move to extend the duration and scope of an existing tax holiday scheme. The scheme, which was due to expire on 30 June this year, allows businesses, across 21 different industrial fields and 19 physical infrastructure development sectors, to pay Corporate Income Tax (CIT) at reduced levels depending on their geographical location.
The scheme will now be extended to 30 June 2024 and will be broadened to include the manufacture of agricultural machinery, furniture, home appliances (including electric cookers and washing machines), mobile handsets, toys, leather goods, and LED television sets. Further details, including the applicable CIT rates, are expected to be announced in the coming months.