The Corona crisis paints a picture of weakness in the health sector. The hospital lacked medical equipment including beds. New tax holidays are being provided in the next budget to increase investment in the health sector. If you invest in the construction of hospitals and clinics in the capital Dhaka, Chittagong, Gazipur and Narayanganj and outside the divisional cities, you can be given 10 years tax leave. This opportunity will be available till June 30, 2031. According to the National Board of Revenue (NBR).
According to NBR sources, this facility will be available to investors only in general and specialized hospitals. However, the NBR can provide some conditions.
For example, the number of beds in the hospital should be at least 200. At least 5 to 10 percent of the number of beds should be in Intensive Care Unit (ICU) beds. The NBR will have to state how many people will be employed, how much will be invested. Overall one has to apply for tax relief from NBR by submitting an investment plan.
In addition, the import of equipment of those hospitals may also be exempted from duty and tax. At present hospitals, clinics, diagnostic centers are subject to regular corporate tax rates. For example, if you are listed on the stock market, 25 percent and if you are not listed on the stock market, 32 percent. Pharmaceutical companies in the health sector get tax benefits.
After the outbreak of Kovid-19, the country’s health system is struggling to cope with it. Corona has lifted all taxes on life-saving items, such as PPE, hand sanitizers, goggles, and face shields. This will continue in the next financial year. These products have been exempted from duty-tax on import of raw materials and VAT at the stage of production and supply for producers in these countries.