Tax Holiday Incentives for Industries in Bangladesh

Bangladesh offers significant tax holiday incentives to encourage industrial growth and attract investment in key sectors. These provisions, outlined within the nation’s tax regulations, aim to stimulate economic development by providing considerable tax relief to qualifying businesses. This article details the eligible industries, the conditions for availing these benefits, and how they vary based on geographical location.

Eligible Industries for Tax Holiday

To qualify for a tax holiday, a company must be engaged in specific industrial activities. The government has identified a diverse range of sectors to promote economic diversification and technological advancement. These eligible industries include, but are not limited to:

       1. Active pharmaceutical ingredients and radio pharmaceuticals

       2. Agricultural machinery

       3. Automation

       4. Automobiles

       5. Artificial fiber manufacturing

       6. Artificial intelligence-based system design and manufacturing

       7. Automobile parts and components manufacturing

       8. Automation and robotics design, manufacturing, including its parts and components

       9. Aircraft heavy maintenance service, including spare parts manufacturing

     10. Basic components of electronics (e.g., resistors, capacitors, transistors, integrated circuits,

           printed circuit boards)

     11. Battery and its spare parts

     12. Bio-fertilizer

     13. Bio-technology based agricultural products/agro product

     14. Boilers and its spare parts and equipment

     15. Compressor and its spare parts

     16. Computer hardware

     17. Furniture

     18. Fish processing and preservation

     19. Home appliances (e.g., blender, rice cooker, microwave oven, electric oven, washing 

           machine, induction cooker, water filter)

     20. Insecticides and pesticides

     21. Leather and leather goods

     22. LPG cylinder

     23. Locally produced fruits and vegetables processing

     24. Mobile phone

     25. Nanotechnology-based product manufacturing

     26. Petrochemicals

     27. Pharmaceuticals

     28. Plastic recycling

     29. Textile machinery

     30. Tissue grafting

     31. Toys manufacturing

     32. Transformer manufacturing

     33. Tissue grafting, development of bio-physics and development of radioactive (diffusion) 

           application etc. (i.e., polymer modification or polymer processing or fiber modification or 

           medical equipment sterilization)

     34. Any other sector or industrial enterprise or entity performing any other work, as specified 

           by the National Board of Revenue (NBR), through government gazette notification

Conditions to Avail Tax Holiday

To be eligible for these tax incentives, businesses must meet certain criteria:

Location: The approved industrial undertaking must be located in Bangladesh.

Commencement of Production: The entity must commence commercial production between July 2020 and June 2025.