January 02, 2020
The National Board of Revenue (NBR) has exempted Summit LNG Terminal Co (Pvt) Ltd from paying VAT and import duty for implementation of the floating, storage and re-gasification unit (FSRU) project, according to a special order.
The FSRU, having a capacity to re-gasify 500 million cubic feet of gas per day (mcfd), initiated commercial operation since April 29, 2019.
The company is entitled to enjoy exemption from payment of value added tax (VAT), advance tax and supplementary duty on products and services related to the FSRU.
However, the products and services that would be imported for personal use will not be entitled to the exemption, according to the order. The NBR issued a special order on December 18, 2019, signed by NBR Chairman Md Mosharraf Hossain Bhuiyan.
The floating LNG terminal was built on the Build, Own, Operate and Transfer (BOOT) basis under the ‘Speedy Supply of Power and Energy (Special Provision) Act 2010’.
Earlier, the NBR had exempted US-based Excelerate Energy Bangladesh from paying similar VAT and taxes for implementation of a similar FSRU.
Excelerate Energy’s LNG terminal initiated commercial operations in August 2018.
Both the FSRUs re-gasified around 548 mmcfd of LNG on December 29, 2109, which is around half of their total capacity to re-gasify of around 1,000 mmcfd of gas.
Azizjst@yahoo.com
