Dhaka, Oct. 11 -- A government move gets going to waive value-added tax (VAT) on local procurements by exporters to enhance the global competitiveness of Bangladesh's export sector, particularly in preparation for the privilege rescinded post-LDC era.

In a recent directive, the National Board of Revenue (NBR) clarified that local sourcing of raw materials and services by exporters under a "Deemed-Export" provision will be eligible for VAT exemption, subject to specific documentation and regulatory conditions.

This move follows repeated appeals from industry associations and exporters who argue that VAT on locally sourced inputs puts them at cost disadvantage compared to bonded-warehouse users, who enjoy duty-free import privileges.

Acc...