DHAKA: The government decided to exempt duties on goods and machineries for setting up 5-star hotels to 5 percent in the country.

This concession came amid the government’s move to extend the tourism industry and boost the private investments in this sector.

The duty free facility was given in light with the Import Policy Order 2012–2015 as some 3 more percent tax and VAT exemption has been given on the import of capital machineries in the 2013-14 fiscal year.

A gazette was published by the finance ministry giving the dateline April 6 in this regard, which was sent to the concerned ministries and departments and the National Board of Revenue (NBR) from Bangladesh Government Press on Tuesday.

The gazette said, as per the Article 22(14)(2) of The Value Added Tax Act, 1991, some 5 percent more import duties and other taxes – equal to regular duties, total value added tax (VAT), supplementary fees – has been exempted in setting up of the standard resident hotels with the consultation of NBR and in boosting the tourism sector for public interest.

The gazette added some conditions for the exemption like getting certification on the imported goods by the Civil Aviation and Tourism Ministry, being registered with the VAT and the Board of Investment for the hotel constricting firm

But the internationally recognized hotel chain franchises will not be required these certifications and the applicant companies will get an opportunity to import the specific goods, fixed by the NBR, before running the hotel commercially.

The exemption will cover the goods including, interior decoration commodities – wooden door and window, carpets, marbles, glaze tiles, kitchen appliances, ceramic kitchenware, and different improved-quality glasses.

Additionally, all security machineries – fire-extinguishers, electric sub stations – other furniture, and lighting apparatus will also be imported within this opportunity.

The ministry sources said government is giving this special concession as the international standard hotels including 5-Star ones would be set up here, which will boom the country’s tourism sector.

BDST: 1325 HRS, APR 16, 2014