Preface

This handout provides an overview of the changes brought in by the Finance Bill
2023 and SROs issued thereafter. The handouts has been prepared on the basis of
publicly available sources i.e. NBR website.

The information contained in this document is of a general nature and is not intended
to address the circumstances of any particular individual. Although we aim to
provide accurate and timely information, we do not provide assurance that such
information is accurate as of the date it is received or that it will continue to be
accurate in the future. No one should act on such information without appropriate
professional advice after a thorough examination of the particular situation.
National Budget Comparison
FY 2023-24 (Proposed) FY 2022-23 (Revised) % Change
Particulars
Amount in Crore Taka Amount in Crore Taka

Total Size of Budget 761,785 660,507 15.33%

Total Revenue Earnings 500,000 433,000 16.28%

Earnings from NBR 430,000 370,000 16.22%

Budget Deficit 261,785 227,507 15.07%

GDP Growth 7.5% 6.03% 24.38%

Inflation 6.0% 7.5% 15.38%

Source: Budget Speech, NBR Website
 Source and Allocation of Budget

Budget Revised Actual 2022-23 Budget

Sector
2022-23 2022-23 (Up to March) 2023-24

Total Tax Revenue 433,000 433,000 268,384 500,000

NBR Tax 370,000 370,000 234,514 430,000
Non-NBR Tax 18,000 18,000 6,023 20,000
Non Tax Receipt 45,000 45,000 27,847 50,000
Total Expenditure 678,064 660,507 302,892 761,785
Operating Recurrent Expenditure 373,242 390,085 223,923 436,247
Development Expenditure 259,617 241,607 62,263 277,582
Annual Development Programme 246,066 227,566 57,500 263,000
Other Expenditure 45,205 28,815 16,706 47,956
Budget Deficit (Excluding Grants) (245,064) (227,507) (34,508) (261,785)
Financing
External Source 98,729 87,082 8,851 106,390
Domestic Source 146,335 140,425 24,896 155,395
Banking Source 106,334 115,425 15,172 132,395

Source: Budget Speech, NBR Website

 NBR Collection Comparison

Sources of Receipts:
2023-24 (In Crore Taka) 2022-23
Total Estimated Receipts – 430,000 Total Estimated Receipts – 370,000

153,260 (35.6%) 121,020 ( 32.71%)

Tax

163,837 (38.1%) 141,192 (38.16%)

VAT

52,200 (12.1%) 49,264 (13.31%)

Import & Other Duty

60,703 (14.1%) 58,524 (15.82% )

Supplementary Duty
Source: Budget Speech, NBR Website
 Actual Revenue Collection Comparison

2022-23 2021-22

59,510 56,408
Tax Tax
Inspiration Motivation

75,889 71,712
VAT VAT
Vision Innovation

33,476 25,899
Import & Other Duty Import & Other Duty
Idea Imagination
Revenue
27,165 25,966
Collection
Supplementary Duty CREATIVITY Supplementary Duty
Upto February 2023
Brainstorming Source: Budget Speech, NBR Website Knowledge
Upto February 2022
 Year-wise NBR Budget
in Crore Taka

430,000
500,000 100%

234,514 *Up to March 2023

88%
450,000 90%

370,000

370,000
89%

330,000

330,000

330,000
78%

325,600
400,000 72% 80%
296,201

301,000
300,500

292,881
280,063

350,000 70%

263,886
63%
300,000 60%
218,616

215,400
250,000 50%

200,000 40%

150,000 30%

100,000 20%

50,000 10%

- 0%

Initial Budget Revised Budget Revenue collected Collection Percentage

Source: Budget Speech, NBR Website
Direct Tax
New Income Tax Act 2023

Simplification

Standardization with International Best Practice

Ease of Doing Business

Reduction of Discretionary Power

 Corporate Tax Rate unchanged

Existing 2022-23 Proposed

Description Tax rate
On failure to comply 2023-2024 Condition: All receipts and
Tax rate
with conditions income must be transacted
Publicly traded company that transfer shares through bank transfer and every
worth more than 10 percent of its paid-up 20% 22.5% Unchanged single transaction above Tk. 5
capital through Initial Public Offering (IPO)
lakhs and annual investment over
Publicly traded company that transfer shares
worth ten percent or less than ten percent of its 22.5% 25% Unchanged
Tk. 36 lakhs of expense and
paid-up capital through IPO investment must be made
Non-publicly traded company 27.5% 30% Unchanged through bank transfer.
One Person Company (OPC) 22.5% 25% Unchanged
Association of persons, trust and fund 27.5% 30% Unchanged
Artificial juridical person and other taxable
27.5% 30% Unchanged
entity Impact

Whereas India took 8 years to make Cashless Transaction Cash Transactions

from 4.4% to 76.1%, enforcing cashless transaction within a Needed to be rationalised
year is completely impractical for companies
 Withdrawal of Exemptions from Reduced Rate

WASA

City Development Authority

From 25%
Civil Aviation Authority

Bangladesh Land Port Authority

to 30%
Bangladesh Television & Radio

Bangladesh Land Port Authority

These autonomous bodies will
Bangladesh Water Development Board
have to pay corporate tax at
Bangladesh Electricity Development Board regular rate from now on
 Withdrawal of Exemptions

Income of ICB from Unit Funds & Mutual Funds

Income of Issuer from Mutual Funds

Return of unit-holders will be reduced

 Environmental Surcharge

Details of Motor Car Rate of Carbon Tax

up to 1500cc /75kW 25,000
1501cc/76kW to 2000cc/100 kW 50,000
Surcharge on Assessee
2001cc/101 kW to 2500cc/125kW 75,000
with more than One
2501cc/126kW to 3000cc/150 kW 150,000
motor car 3001cc/151 kW to 3500cc/175kW 200,000
More than 3500cc/175kW 350,000

Motor Car excluding buses,
minibuses, coasters, prime movers,
trucks, lorries, tank lorries, pickup
vans, human haulers, autorickshaws
and motorcycles
Impact
● Great initiative by the Govt.
● Assessee will be discouraged to purchase
additional car
● Effective tax rate of corporate will be higher
 Environmental Surcharge

Particulars Car 1-1500 CC Car 2- 2000 CC Effect

Adjustable but not-

Advance Tax 25,000 50,000
refundable
Additional advance tax Adjustable but not-
25,000
for 2nd Car refundable
Carbon Surcharge for
50,000 Non-adjustable
higher CC car

Total Cash Outflow 150,000

Proposal of new TDS rate on certain goods

Particulars Current Proposed

Payment to supplier of Tobacco Leaves in any
form, Tobacco Products including Cigarettes, 3% to 7% 10%
Biri, Jorda, Gul
Payment to supplier of Extra High Voltage
Power Cable 33KV to 500KV by local
3% to 7% 3%
manufacturers having own Vertical Continuous
Vulcanization line
Gold dores imported by Industrial IRC holder
5% 0%
VAT compliant gold refinery

Impact
• Increased Tax Burden of Tobacco Leaf
Farmer
• Contradicts with the tax exemption of
Farmers having mostly agricultural Income
 TDS On Govt. Approved Foreign Loan Interest

Interest payable by:

Govt or Local Authority

Industrial Undertaking in Bangladesh
Financial Institutions for the advancement of loans to Industrial Undertaking

Exemption Omitted

Increased Tax Burden for foreign Loan

specially loan already utilised
 Tax on Transfer of Property (Commercial Areas)

Rate of tax as per katha (1.65 decimal)

Name of the Commercial Area
Previous Proposed
Gulshan, Banani, Motijheel, Dilkhusha, North SouthRoad, 4% of the deed value or 8% of the deed value or
Motijheel Expansion areas and Mohakhali of Dhaka Taka 10,80,000/- Taka 20,00,000/-
4% of the deed value or 8% of the deed value or
Karwan Bazar of Dhaka
Taka 6,00,000/- Taka 12,00,000/-
4% of the deed value or 8% of the deed value or
Agrabad and CDA Avenue of Chittagong
Taka 3,60,000/- Taka 8,00,000/-
Narayanganj, Banga Bandhu Avenue, Badda, 4% of the deed value or 8% of the deed value or Whichever
Whichever
Sayedabad, Postogola and Gandaria of Dhaka Taka 3,60,000/- Taka 8,00,000/- is higher
is higher
Uttara, Sonargaon, Janapath, Shahbag, 4% of the deed value or 8% of the deed value or
Panthapath, Banglamotor, Kakrail of Dhaka Taka 6,00,000/- Taka 12,00,000/-
4% of the deed value or 8% of the deed value or
Nababpur and Fulbaria of Dhaka
Taka 3,00,000/- Taka 6,00,000/-
Taka 600 per square Taka 800 per square
Additional tax on any structure, building, flat, apartment or
meter or 4% of the deed meter or 8% of the deed
floor space
value value
 Tax on Transfer of Property

Rate of tax as per katha (1.65 decimal)

Name of the Area
Previous Proposed
Uttara (Sector 1-9), Khilgaon rehabilitation area (beside 100
feet road), Azimpur, Rajarbagh rehabilitation area (beside
4% of the deed value or 8% of the deed value or
bishwa road) of Dhaka, Baridhara DOHS, Bashundhara
Taka 90,000/- Taka 3,00,000/-
(Block A-G), Niketon of Dhaka, Agrabad, Halishohar,
Panchlaish, Nasirabad, Mehedibag of Chittagong
Gulshan, Banani, Dhanmondi, Baridhara DOHS, Banani
4% of the deed value or 8% of the deed value or
DOHS, Mohakhali DOHS, Basundhara (Block: A-I), Niketon
Taka 3,00,000/- Taka 10,00,000/-
and Baridhara of Dhaka
Rajuk Purbachal Residential Model Town, Basundhara 4% of the deed value or 8% of the deed value or Whichever
Whichever
(Block: K-P), Jhilmil Residential Area, Dhanmondi Taka 2,40,000/- Taka 3,00,000/- is higher
is higher
Kakrail, Segunbagicha, Bijoynagar, Eskaton, Green Road,
Elephant Road, Fakirapool, Arambagh, Maghbazar (within
one hundred feet of main road), Tejgaon Industrial Area, 4% of the deed value or 8% of the deed value or
Sher-e- Banglanagar Administrative Area, Agargaon Taka 1,80,000/- Taka 5,00,000/-
Administrative Area, Lalmatia, Cantonment of Dhaka and
Khulshi of Chittagong
Kakrail, Segunbagicha, Bijoynagar, Eskaton, Green Road,
4% of the deed value or 8% of the deed value or
Elephant Road area (outside one hundred feet of main road)
Taka 1,20,000/- Taka 2,50,000/-
of Dhaka
 Tax on Transfer of Property

Rate of tax as per katha (1.65 decimal)

Name of the Area
Previous Proposed
Green Road (from Road 3 to 8 of Dhanmondi Residential 4% of the deed value or 8% of the deed value or
Area of Dhaka) Taka 2,40,000/ Taka 5,00,000/
Uttara (Sector 10 to 14), Nikunja (South), Nikunja (North),
Badda Rehabilitation Area, Ganderia Rehabilitation Area, 4% of the deed value or 8% of the deed value or
Syampur Rehabilitation Area, IG Bagan Rehabilitation Taka 60,000/- Taka 1,20,000/-
Area, Tongi Industrial Area of Dhaka
Syampur Industrial Area, Postagola Industrial Area and 4% of the deed value or 8% of the deed value or
Jurain Industrial Area of Dhaka Taka 48,000/- Taka 1,00,000/- Whichever
Whichever
is higher
Khilgaon Rehabilitation Area (beside less than 100 feet is higher
4% of the deed value or 8% of the deed value or
road), Rajarbagh Rehabilitation Area (beside 40 feet and
Taka 72,000/- Taka 1,50,000/-
other internal road) of Dhaka
Goran (beside 40 feet road) and Hajaribagh Tannery Area of 4% of the deed value or 8% of the deed value or
Dhaka Taka 30,000/- Taka 60,000/-
Taka 600 per square Taka 800 per square
Additional tax on any structure, building, flat, apartment or
meter or 4% of the deed meter or 8% of the deed
floor space
value value
 Tax on Transfer of Property

Rate of tax as per katha (1.65 decimal)

Name of the Area
Previous Proposed
Within the jurisdiction of Rajdhani Unnayan Kartripakya
(RAJUK) and Chittagong Development Authority (CDA) 4% of deed value 8% of deed value
except areas specified in clauses (a) and (b)
Within the jurisdiction of Gazipur, Narayanganj,
Munshiganj, Manikganj, Narsingdi, Dhaka and Chittagong
districts [excluding Rajdhani Unnayan Kartripakya
(RAJUK) and Chittagong Development Authority (CDA)], 3% of deed value 6% of deed value Whichever
Whichever
and within any City Corporation (excluding Dhaka South is higher
is higher
City Corporation and Dhaka North City Corporation) and
Cantonment Board
Areas within the jurisdiction of a Pauroshova of any district
3% of deed value 6% of deed value
Headquarter
Areas of any other Pauroshova 2% of deed value 4% of deed value
Any other area not specified in clauses (a), (b) and (c) 1% of deed value 2% of deed value
 Withdrawal of WHT Statement

Current Proposed
Statement of Tax deducted & Collected u/r 18 Monthly
Statement of Dividend Payment u/s 110 Yearly
Statement of Interest Payment u/s 109 Yearly Statement of WHT tax
u/s 75A (Monthly) Monthly
Statement of TDS from Salary u/s 108 Yearly
Statement of Salary Tax deducted u/r 21 Monthly
Statement of WHT tax u/s 75A Half Yearly

Cost of doing business will decrease to

prepare WHT return from 29 to 12 in a year
 Increase of Tax-free Income

Tax-free Income
Person
Then Now Increased
Person including
individual, Hindu 300,000 350,000 50,000 Impact
Undivided Family
Female & assessee aged Some relief from
350,000 400,000 50,000
more than 65 years
tax for the mid-
Third Gender 350,000 475,000 125,000 level taxpayers

Disabled Person 450,000 475,000 25,000

Gazetted wounded
475,000 500,000 25,000
Freedom Fighter
 Gainers vs Losers for increasing Tk. 50K Limit

Annual Monthly Net tax Net tax

Tax
gross with Including Taxable Payable Payable
Gross Income /PM Increase/
two Festival Festival Income 2022 2023
Decrease
Bonus Bonus (IY 21-22) (IY 22-23)
36,000 473,888 39,491 293,134 - 2,000 2,000
37,500 493,762 41,147 306,262 5,000 2,000 (3,000)
5,000 2,000 (3,000)
42,500 560,000 46,667 350,000

42,550 560,662 46,722 350,440 5,000 5,000 -

67,805 895,304 74,609 571,429 5,000 5,000 (0)
70,000 924,388 77,032 590,634 6,344 5,000 (1,344)
75,965 1,003,424 83,619 642,829 9,998 5,000 (4,998)
80,000 1,056,888 88,074 678,134 12,469 7,469 (5,000)
 Minimum Tax of Tk. 2,000

If an assessee (Individual, Firm, HUF) Impact

is required to submit a return, they are
Assessee with no taxable
obligated to pay a minimum tax of Tk. income is liable to pay a
2,000, irrespective of the amount of minimum tax of Tk. 2,000

their income. Contradicts with the spirit of

law
Taxable Minimum
Assessee
Income Tax

Person 1, Income less than 350,000 300,000 2,000

Person 2, Income higher than 350,000 420,000 5,000

 Withdrawal of Rule for Salary Tax Calculation

Valuation of Perquisite Allowance

House Rent Allowance Received in Cash

Rent Free Accommodation

Conveyance Allowance Received in Cash
Conveyance received for private use
Free of Concessional passage
Newly proposed Income Tax Act 2023
has incorporated all allowances up to
BDT 450,000 or 2/3rd of Income from
Salary whichever is lower

Entertainment Allowance

Medical Allowance
 Increase of Surcharge free limit

No Surcharge
for having
the net wealth upto Tk. 4 Crore
Impact
Proposed Net Asset
Surcharge Rate Current Net Asset Value
Value
● Only the person having
0% up to 3 crores up to 4 crores
the net wealth upto 4
4 crores to 10 crores/ More 4 crores to 10 crores/ Crore got the benefit
than one car in own name/ More than one car in own
10%
House Property more than name/ House Property ● No impact for them who
8,000 SFT more than 8,000 SFT have net wealth more
20% 10 crores to 20 crores 10 crores to 20 crores than 4 Crore
30% 20 crores to 50 crores 20 crores to 50 crores

35% More than 50 crores More than 50 crores

 Travel Tax Increased

Type of Travel Current Travel Tax Rate Current Travel Tax Rate

Travel by AIR to North America, South America, Europe, Africa,

Australia, New Zealand, China, Japan, Hong Kong, North Korea, 4,000 6,000
Vietnam, Laos, Cambodia & Taiwan
Travel by AIR to SARRC countries 1,200 2,000
Travel by AIR to any other country 3,000 4,000
Travel by AIR within Bangladesh NIL 200
Travel by Road to any country 500 1,000
Travel by Waterways to any country 800 1,000

Impact
Cost of Air Travel will increase
 Exemption on Travel Tax

5 (Five) years old or less.

Pilgrims travelling to Saudi Arabia for performing Hajj.
Blind persons or cancer patients or disabled persons using stretchers.
United Nations officials and their families.
Diplomatic missions in Bangladesh have diplomatic status Members and their family members.
Staff of World Bank, German Technical Organization and Japan International Development Agency working in
Bangladesh and their family members.
A member of the crew on duty in the aircraft.
Bangladesh visa-free transit passengers who will not stay in Bangladesh for more than 72 (Seventy-two) hours.
Bangladeshi citizen working in any airline who will travel abroad at free or reduced fare.

Exemption has been removed from the payment of

travel tax to the residents of enclaves who are
permanently visiting India.
VAT & SD
Definition of Input

Purchase of vehicles now in the negative list

Entity will lose input tax credit facility

Definition of Representative

Appointed VAT consultant now act

as a representative of an entity

VAT
Consultant

Newly added in definition and clarified

Definition of Export

Export through foreign currency

shall only be considered as export

Definition of Export is more clarified

Definition of Marketplace

Marketplace means a digital commerce platform in which one or more sellers insert information about their
products or services and supplies are provided through the said platform, which means in this case that no
product will be bought or sold by the person operating the marketplace and they will not have any point of sale.

Seller Marketplace Buyer

Confusion between Online Retail Sales &

Marketplace resolved
5% VAT on
Commission
Definition of Online Sales

“Online Retail Sales" means the purchase and sale of goods or services through the use of
electronic networks which have previously been purchased from any manufacturer or service
provider or merchant on payment of VAT and the same shall be supplied by the online retailer
on payment of VAT and in case the said online retailer does not have any sales center of its own

Purchase

Sales

Seller Online Retail Sales Buyer

Confusion between Online Retail Sales

& Marketplace resolved 5%
Mandatory VAT Registration

Mandatory
VAT
Registration

Cooking & Kitchen Appliances

Manufacturers of cooking & kitchen appliances

now under VAT net
 Contract Manufacturer

Mushak 4.3 must

include raw
material details

Contract manufacturers using own raw materials

Contract manufacturers using raw materials of

the product owner
Contract
Manufacturer

Mushak 4.3 solely based

on consideration from the
Conflict with existing law as service industry product owner
isn’t required to submit Mushak 4.3
 Digital Invoice as Mushak 6.3

Digital

Mushak 6.3

Payment of Electricity bill through digital payment gateway

& banking will be considered as Mushak 6.3

Input tax rebate aligned with practice

Input Tax Credit for Import of Service

Need to show
separately in the part
3

Output VAT
Import of Service

Mushak 9.1 (VAT

Return)

More Clarity on Import of Service related

entry in VAT Return
 Changes in Partial Input Tax Credit

Rebatable taxable supply u/s 46 BDT 5,000

Partial Input Tax Credit: I x (T/A )
Non-rebatable taxable supply u/s 46 BDT 3,000

Exempted supply BDT 2,000

Currently
Partial Input Tax Credit: 2000 x 5,000 / 10,000
Total Input Tax in this period BDT 2,000

= BDT 1,000

Previously
▪ No more input tax credit on non-rebatable
Partial Input Tax Credit: 2000 x (5,000 + 3,000) / 10,000 supply
▪ Formula has been aligned with actual
= BDT 1,600 rebateable input tax credit
Payment through banking system

Payment through mobile banking will also be

considered as a payment through banking channel

Business friendly & aligned with VAT Act

 Restrictions on Rebate & Decreasing
Adjustment

Input tax credit & decreasing adjustment can’t be claimed through amendment of VAT Return

Mushak 9.1 (VAT

Return)

Decreasing
Adjustment Claim within time limit, otherwise
cost will increase
 Refund of Supplementary Duty for Exporter

Supplementary Duty Finished Goods

Exporter can claim refund of SD

RAW Material
balance without carrying forward
No SD refund claim
on local supplies

Cost reduced for export oriented industries

Pecuniary Jurisdiction of VAT officers

Pecuniary Jurisdiction of the VAT officers has been increased

Previous Pecuniary New Pecuniary

VAT Officers
Jurisdiction* (Tk) Jurisdiction* (Tk)

Commissioner More than 40 Lac More than 1 Crore

Additional Commissioner Up to 40 Lac Up to 1 Corer
Joint Commissioner Up to 30 Lac Up to 50 Lac
Deputy Commissioner Up to 20 Lac Up to 30 Lac
Assistant Commissioner Up to 10 Lac Up to 20 Lac
Revenue Officer Up to 4 Lac Up to 5 Lac

New limit will be more rational

Penalty Imposition in Show Cause Notices

Imposition of penalty at the

time of issuing show cause
notice

▪ Number of litigations will be reduced

▪ Disposal of cases will be expedited

No transfer of money – freezing period

VAT authority can ask for freezing the bank

account but can’t ask for transfer of the fund to the
govt. exchequer

VAT
Authority

VAT authority power restricted

VAT on Locally Manufactured Mobile Phones

Previous Minimum Value

Type of Entity Stage New Rate
Rate addition

Manufacturer Local Manufacturing Exempted 2% 30%

Assembler Local Manufacturing 3% 5% 20%
Assembler Local Manufacturing 5% 7.5% 20%

Additional Condition: 50% of the products must be manufactured locally

Local manufacturers will be affected

& price of phones will be increased
Withdrawal of Exemption

Product Name New Rate Previously

Polypropylene Staple Fiber 5%
Ballpoint pen 15%
Software and Customization 5%
Dry Dates 15%
Optical Fiber 5%

Product price will be increased

VAT Rate on the Rise

Previous
Product Name New Rate
Rate

Plastic Tableware 5% 7.5%

Aluminum Kitchenware 5% 7.5%
All kind of Tissue papers 5% 7.5%
Steel/Iron for LPG Cylinder manufacturing 5% 7.5%
Sunglass 5% 7.5%

Product price will be increased

Reduced VAT Rate

Product Name Previous Rate New Rate

Sweets 15% 7.5%

Terephthalic Acid, Ethylene Glycol &
15% 5%
Hot Rolled Stainless Steel Sheet in Coil

Product price will be decreased

Withdrawal from Advance Tax

Advance Tax
Product Name
(AT)

Aircraft parts and engine, Turbo engine

Rice transplanter, driers, sprayers, potato planter
All kind of containers
Solar power operated water distillation plant
Gold Dores
Petroleum Oils, Bituminous Oil, Crude

• Facilitating trade & reducing production cost

• Petroleum cost reduction likely to reduce inflation
Extension of Exemption Facilities

Manufacturing Industry Exemption Validity

Raw Materials of Diaper and Sanitary Napkin

Refrigerator and Freezer Manufacturing 30 June, 2024
LABSA & SLES (Soap and Shampoo Raw Materials)
Washing Machine, Microvan, Electric Oven
30 June, 2025
Blender, Juicer, Grinder, Multi Cooker, Rice Cooker
Computer Accessories 30 June, 2026

Facilitating trade & encouraging made in Bangladesh

VAT Exemption on new products

Heading No HS Code Description Stage

Petroleum oils and oils obtained

27.09 2709.00.00 Import stage
from bituminous minerals
2710.12.11 Other motor spirits, including
2710.12.19 aviation spirit
2710.12.20 Spirit type jet fuel Petroleum cost
2710.12.31 White spirit
reduction likely to
reduce inflation
2710.12.32 Naphta
27.10 Import stage
2710.12.41 J.P.1 kerosene type jet fuels
2710.12.42 J.P.4 Kerosene type jet fuels
2710.12.43 Other kerosene type jet fuels
2710.12.49 Other kerosene
2710.12.61 Light diesel oils
VAT Exemption Newly Introduced through SRO

Heading No HS Codes Description Stage

0804.10.19 Dates fresh or dried (up to 2.5kg

8.04 Production Stage
0804.10.29 without packaging or canned
1905.10.00 Bread and buns worth up to Tk
1905.20.00 150
Hand made biscuit worth Tk 200
19.05 1905.31.00 Production Stage
per kg
Cake worth Tk 300 per kg except
1905.90.00
party cakes
Hollow concrete block,
Related HS
68.1 Autoclaved aerated concrete Production Stage
code
Block
VAT Exemption on new products

Heading No HS Codes Description Stage

2710.12.62 High speed diesel oils

27.10 Import Stage
2710.19.11 Furnace oils

30.02-30.04 Malaria & Tuberculosis medicine Manufacturing Stage

Turbo-jets Of a thrust not
8411.11.00 Import Stage
exceeding 25 KN
84.11
Turbo-jets Of a thrust exceeding
8411.12.00 Import Stage
25 KN
Encouraging
8609.00.10 Insulated or Refer Container Import Stage
86.09 RMG industry
8609.00.90 Other Container Import Stage
54.02-54.10
& Artificial Fibre Manufacturing Stage
55.12-55.16
Withdrawal of VAT Exemption

Heading No HS Codes Description Stage

8.01 0801.32.90 Other Cashew nuts Shelled Import stage

10.06 1006.30.91 Non fortified Basmoti Rice Import stage
Database; operating systems;
8523.29.12 development tool productivity,
85.23 8523.49.21 communication or collaboration Import stage
8523.80.10 software for automatic data
processing machines
0804.10.19 Dried and fresh dates ( except
8.04 Production & Import Stage
0804.10.29 wrapped or canned up to 2.5 kg)
Related HS
85.23 Software Production Stage
code
9608.10.00 Bell point pen Production Stage Cost of Bangladeshi
96.08 made software will
increase
Major impact on Paint industry (Supply
Stage)

H.N: 32.08 to 32.10

5%

Paint Primers

Cost of Primers will be higher

Major impact in SD (Import Stage)

Heading No Description Previous Rate New Rate

Fruit, nuts and other edible parts of plants, otherwise

prepared or preserved, whether or not containing added
20.08 0% 20%
sugar or other sweetening matter or spirit, not
elsewhere specified or included.
Products containing tobacco, reconstituted tobacco,
nicotine, or tobacco or nicotine substitutes, intended for
24.04 inhalation without combination: other nicotine 0% 150%
containing products intended for the intake of nicotine
into human body
H.S Code- 4813.10.19, 4813.20.90, 4813.90.90
48.13 Cigarette paper, whether or not cut to size or in the form 100% 150%
of booklets or tubes, imported by other importers
Motor vehicles built-up, having a seating capacity not
87.02 30% 20%
more than 15, including driver
More rise in Tobacco products

Price Price
HS Code HS Code Details Particulars SD(%)
(Previous) (Now)
Lower 40 45 58
Medium 65 67 65
Cigarettes Containing
24.02 2402.20.00
Tobacco (10 Shalaka) Higher 111 113 65
Highest 142 150 65
Customs
 Ex-bond Bill of Entry

Definition of “bill of entry”

includes “Ex-bond bill of entry”
Submission of ex-bond bill of
entry is mandatory for the
clearance of home consumption
goods.
Impact
Clearance of home consumption
goods are now under formal
compliance.

Ex-bond BOE
 Replacement of Patents and Designs Act

The Patents and Designs Act

of 1911 has been replaced by
the new Patent Act of 2022.
Impact
In case of any inconsistencies, the
provisions of the new Patent Act of
2022 will apply.
The Patent The Patent
& Design Act 2022
Act 1991
 Register of bonds

Maintenance of a register is
mandatory for all goods irrespective Impact
of duty paid or not. This will help to keep track of all the
goods.

Local purchase or import details Increased legal compliance for the

has to be registered mandatorily by owner
the owner of the warehouse in the
bonded warehouse.
Increase in Duty for Agricultural Products

CD increase
on DUTY
imposition on
Cashew Nuts
Agricultural
from 5% to Products
15%, SD 20%
20% SD on
Processed
nuts and
TTI increase processed
on Cashew fruits
Nuts from 25% CD on Fresh

15.25% to 43%. dates and

dried dates
Implication of Duty on Health Industry

Concessionary DUTY
rate on imposition on
Health Sector
SD on Other
Silicon tube products containing
substituted or
reconstituted
tobacco 150%

SD on parts of CD on
Electronic Electric
cigarettes and
electric vaporizing
cigarette
devices from 0% to increase from
100%. 5% to 25%
Implication of Duty on Industrial Sector

DUTY
CD 15% on Lift imposition on CD on Master batch not
and skip hoists Industrial Sector containing pigments &
non-printed cast
polypropylene film &
Others from 10% to
15%

CD on natural
CD of 15% from
or artificial
1% on escalator
abrasive powder
and moving
walkways or grain from
10% to 15%
Implication of Duty on Cement Industry

DUTY
imposition on
Cement Industry

Increasing duty on Increasing duty on

Cement clinker Cement clinker imported
imported by VAT by other commercial
compliant industrial importer from Tk. 750 to
IRC holder from Tk Tk. 950 per M.ton
500 to Tk.700 per
M.ton
Implication of Duty on Software Industry

25% customs duty

on importation of
software

Cost of imported
software will
increase
Implication of Duty on Electric Panel Industry
Electric Motor Manufacturing Industry

CD increased
from 1% to 10%
on Electric Panel
Cost will increase

Two new HS codes

introduced for electric motor Import cost will reduce
parts to enable the industry to
import at a reduced rate under
the capital machinery, spare
parts and equipment related
notification
Changes in Local Bicycle Manufacturing

Increase the CD from

10% to 15% on the
import of freewheel
sprocket-wheels of
bicycles

Cost will increase

Imposition of Duty on other industry

RD & TTI shall

be 20% & Imposition of
Duty on other
89.32% for all industry
types of face
wash
CD shall increase
from 10% to 15%
for BOPP Film
Increase in CD production
from 5% to CD & TTI shall factories
25% for be 15% & 20%
finished goggles for all types of
containers
Amendment of description of HS codes
Trunks, suit-cases, vanity-cases, executive-
4202.10 cases, brief-cases, school satchels and similar
containers:

Imported by Industrial IRC holder VAT compliant

4811.90.11 Ceramic/Melamine/ Transfers (decalcomania)/
Opal glassware manufacturing industry

Transfers (decalcomanias) imported by

4908.10.10 Industrial IRC holder VAT compliant ceramic
or melamine or Opal glassware industry

7606.11.10 Imported by Industrial IRC holder VAT

compliant electric fan manufacturing industry

8437.80.10 Rice huller and Rice/wheat crusher

Split of HS Code

8543.90.00 8714.93.10

8543.90.10 8543.90.90 8714.93.11 8714.93.19

8503.00.90

8503.00.91 8503.00.92 8503.00.99

 Merge of HS Code

3903.30.10 3903.30.90 3907.40.10 3907.40.90 3907.99.10 3907.99.90

3903.30.00 3907.40.00 3907.99.00

7601.20.10 7601.20.90 7606.92.10 7606.92.90 8539.90.31 8539.90.39

7601.20.00 7606.92.00 8539.90.30

9405.91.10 9405.91.90 9405.92.10 9405.92.90 9405.99.10 9405.99.90

9405.91.00 9405.92.00 9405.99.00

Withdrawal of RD & SD

Total 234 items are excluded from RD & SD

6101.30.00-Men’s or 6104.13.00-Women’s 6201.30.00- 0303.63.10- Cod

boy’s over/car coats, or girl’s suits of Overcoat, rain-coat wrapped/canned up
etc. of manmade synthetic fibers, knit of cotton to 2.5 kg
 Increase in Minimum Value

H.S Codes Description Existing Proposed

6808.00.00 Gypsum Board .50 USD/Unit .70 USD/Unit
8504.40.10 Mobile and other battery
1.00 USD/Unit 1.20 USD/Unit
charger
87.14 Steel 1.50 USD/Unit 2.00 USD/Unit
 The Passenger (Non-tourist) Baggage (Import)
Rules, 2023

Decreased Gold Import Limit: Passengers can now import gold bars
weighing over 117 grams (previously 234 grams) by paying duty and
taxes and making a declaration upon arrival.

No Concealed Excess: Any attempt to carry more gold than the specified
limit concealed will result in confiscation.

Limited Duty-Free Import: Passengers arriving by land route can only

import baggage worth 400 dollars duty-free up to three times per year.
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Disclaimer!

No part of this presentation may be reproduced, stored in a

retrieval system or transmitted in any form by any means-
electronic, mechanical, photocopying, recording or
otherwise- without prior permission from the presenter.

This presentation is intended to provide information but is

not a substitute of legal or accounting advice.
 Directors’ Contact Details

Snehasish Barua, Zareen Mahmud Sukanta

FCA (ICAB), ACA (ICAEW) Hosein, FCA, CPA Bhattacharjee, FCA
Director Director Director
snehasish@smac-bd.com mahmud@smac-bd.com sukanta@smac-bd.com

SMAC Advisory Services Limited

House No: 46, Suraia Tower, Progati Sarani Rd, Baridhara J Block, Dhaka, Bangladesh