Electronics firm gets import VAT waiver

The National Board of Revenue has exempted Minister Hi-Tech Park Ltd from value-added tax for importing components and spare parts of freezers, refrigerators and air-conditioners. The privilege will continue until June 30.

“The waiver will facilitate development of domestic industries and boost local manufacturing,” said a senior official of the NBR preferring anonymity.

The company, which markets its products under its Minister brand, is the fifth firm to get such benefits after Walton, Runner Automobiles, Jamuna Electronics and Butterfly Marketing Ltd.

The NBR started giving the benefits to firms based on two separate orders released in 2010 and 2011 to help domestic production.

In the 2010 order, the tax authority released a list of machinery parts that qualify for tax exemption.

The NBR in the latest order in favour of Minister Hi-Tech Park said the value addition by the company should be at least 30 percent through local manufacturing. It will also have to make at least 10 percent spare parts locally.