Posted on April 11, 2017
By Asif Showkat Kallol, dhakatribune
Finance Ministry has cancelled a plan to give a 10% cash incentive to Vosta LMG-Karnaphuly Joint Venture Consortium Ltd as the firm does not use local raw materials to produce ships, dredgers and water machines.
The joint venture has already taken bond facilities from Chittagong Bond Corporate for importing raw materials to manufacture ships, dredgers and vessels.
It demanded a 10% cash incentive on export of products, according to the finance ministry.
Finance Minister AMA Muhith said the Vosta LMG is no longer operating in Bangladesh.
The National Export Policy 2015-18 says the use of local raw materials and foreign investments are treated as implicit exports and direct sale of foreign exchange is one of the implicit exports.
Vosta LMG-Karnaphuly Joint Venture Consortium Ltd in its website said it is operating as an implicit exporter in Bangladesh, according to finance ministry.
October 2014, the Vosta LMG and Karnaphuly delivered a total of 15 dredgers to the Bangladesh Inland Water Transport Authority and the Water Development Board, which are employed to keep the Bangladesh waterway system navigable.
The Netherlands firm Vosta LMG is specialised in developing and manufacturing dredging components.
Source: DhakaTribune
