Export-oriented industries will not have to pay value-added tax on port services provided by the Chittagong Port Authority, said the National Board of Revenue. VAT wing of the revenue board on Tuesday asked the port authority to stop collecting 15 per cent VAT on port services from 100 per cent export-oriented industries.The NBR informed the Bangladesh Garment Manufacturers and Exporters Association of the decision and asked field-level customs houses and other commissionerates to take steps as per the decision. On December 27, the revenue board in a letter asked the CPA to deduct 15 per cent VAT on all types of charges and fees received from port users for providing any type of service.The CPA provides around 60 types of services to port users, mainly importers and exporters. The revenue board in 2005 provided VAT exemption on port services to 100 per cent export-oriented industries, deemed exporters along with factories located in export processing zones. The BGMEA in early March complained that the CPA had been charging the VAT from export-oriented RMG sector despite the exemption. The BGMEA requested the NBR to issue an order clarifying the issues and asking the CPA to stop deduction of VAT from exporters. Officials of the CPA said that they charged the VAT as there was no instruction in the latest NBR letter over non-deduction of the VAT from the RMG sector.In this context, the revenue board on Tuesday issued the letter saying that the applicability of the statutory regulatory order issued in 2005 providing the exemption still remains in place. It also requested the CPA and its field offices to take steps in line with the SRO while deduction of VAT on port services, according to the letter.
