11 August 2009

Approval of VAT exemption

Since the beginning of Special Economic Zone, everyone assumed that incentives like VAT is exempted for export industrial as well as capital good like equipments and machinery. However, we found such incentives were not given to any SEZ.
In July 2nd, the Prime Minister approved 1. VAT-exempted for all exporting industrial for i)raw material ii)equipments and machinery iii)construction material.
2. VAT-exempted for domestic industrial for i)equipments and machinery ii)construction material.
These exempted is only a trail period up to 31 Dec 2010. The government will set up a mechanism to monitor of such transactions. I believe that the government is starting to understand how important to attract FDI with such incentives, however it is still need more improvement to shortage the process of legal frame work and more transparency.

No comments:

Post a Comment