Bangladesh, Oct. 13 -- The waiver of Value Added Tax (VAT) for international oil companies on local production and supply of gas no longer exists in the new law, although their contract has such a provision.
Petrobangla will have to pay the VAT at 15 per cent from the current fiscal year. The state-run oil and gas corporation has been enjoying the exemption since 1993.
The production sharing contract between the government and IOCs has included the VAT exemption facility. The contract is scheduled to expire in 2029. With the implementation of the new VAT and Supplementary Duty Act-2012 from July 1, 2019, the National Board of Revenue has scrapped all its regulatory orders, including the one for exempting IOCs from tax payment.
In a recen...