1. Industrial undertaking eligible for tax exemption.—

(1) Subject to the provisions of this Act, any approved tax exempted entity engaged in the activities mentioned below shall be eligible for tax exemption.

(a) Manufacture or manufacture of the following goods, namely:—

(1) active pharmaceuticals ingredient and radio pharmaceuticals;

(2) agriculture machineries;

(3) automatic bricks;

(4) automobile;

(5) barrier contraceptive and rubber latex;

(6) basic components of electronics (e.g. resistor, capacitor, transistor, integrated circuit, multilayer PCB);

(7) bi-cycle including parts thereof;

(8) bio-fertilizer;

(9) biotechnology based agricultural product/ agro products;

(10) boiler including parts and equipment thereof;

(11) compressor including parts thereof;

(12) computer hardware;

(13) furniture;

(14) home appliances (blender, rice cooker, microwave oven, electric oven, washing machine, induction cooker, water filter etc.);

(15) insecticides or pesticides;

(16) leather and leather goods;

(17) LED TV;

(18) locally produced fruits and vegetables processing;

(19) mobile phone;

(20) petro-chemicals;

(21) pharmaceuticals;

(22) plastic recycling;

(23) textile machinery;

(24) tissue grafting;

(25) toy manufacturing;

(26) tyre manufacturing;

(27) Electrical transformer;

(28) Artificial fiber or manmade fiber manufacturing;

(29) Automobile parts and components manufacturing;

(30) Automation and Robotics design, manufacturing including parts and components thereof;

(31) Artificial Intelligence based system design and/or manufacturing;

(32) Nanotechnology based products manufacturing;

(33) Aircraft heavy maintenance services including parts manufacturing;

(b) locally produced fruits and vegetables processing;

(c) Tissue grafting, development of biotechnology and development of radioactive (diffusion) applications in industry (i.e., polymer quality improvement or polymer degradation or food preservation or medical device sterilization);

(d) any other sector or industrial undertaking or any other activity of entity prescribed by the Government, by notification in the Government Gazette.

(2) The approved tax exempted entity shall be located in Bangladesh and shall commence commercial production between July, 2020 and June, 2025.

2. Tax exempt income for entities mentioned in paragraph 1.—

(1) Income derived from business arising out of the activities mentioned in paragraph 1 of an approved tax exempted entity shall be exempt from tax in accordance with sub-paragraph (4).

(2) Income derived from any source other than the activities mentioned in sub-paragraph (1) shall not be included in this Part.

(3) Income tax exemption shall not be applicable for income derived from activity mentioned in paragraph (1) in city corporation area or district headquarter municipalities, Rangamati, Bandarban, and Khagrachari districts.

(4) The amount of tax exemption shall be as follows, namely:—

(a) if the approved tax exempted entity is setup in Dhaka, or Chattogram Division, excluding Rangamati, Bandarban and Khagrachari districts (outside city corporation area), then tax shall be exempted for a period of ten years beginning with the month of commencement of commercial production of the said undertaking, as per following rate, namely:—