(1) Where  a bank or financial institution by a local letter of credit or any other financing arrangement under sub-section (2) is not a financing business or process or resale after conversion, for the purpose of any person, hereinafter referred to as providing any loan facility for the purchase  of any goods in Bangladesh by another person, hereinafter referred to as Person in that case the said bank or financial institution at the time of payment or loan to Person the person ‘AS shall deduct tax at the rate of 3% (three percent) on the amount paid or loaned for purchase by “A”.

(2) Where a bank or financial institution provides any credit facility to a distributor under any such financing arrangement where a person, hereinafter referred to as person “C”, sells goods from the bank or financial  institution to any of its distributors, hereinafter referred to as person “D” or any money is ‘received against the invoice, in which case the said bank or financial institution shall deduct tax at the rate of 1% (one percent) on the amount paid or loaned to Person “D” for the goods invoiced in favor of Person “D” while paying or lending to Person “C”.

(3) For Rice, wheat, round potato, onion, garlic, beans, gram, lentil, ginger, turmeric, dry chillies, dal, maize, coarse flour, flour, salt, edible oil, sugar, black pepper, cinnamon, almonds, cloves, dates, cassia leaves, computers or computer parts, jute, cotton, yarn and all kinds of fruits, shall deduct tax at the rate of 2% (two percent) on the amount paid or loaned by a bank or financial institution in respect of opening or making a local letter of credit or any other financing agreement) 

 Explanation.—For the purposes of this section, “distributor” means a person who carries out the activity of supplying processed goods manufactured by another person to the ultimate consumer either directly or through any other intermediary.