Being one of the key sectors which generates over 25% of national industrial exports, the government has identified a wide range of targeted industrial sub-sectors to be promoted under the BOI to drive the economic development process of the country.
In line with the new policy guidelines of the government the manufacturing sector is to be promoted in three different segments.
Export oriented sector to manufacture and export non traditional goods to generate foreign exchange earnings, employment, local value addition and the enhancement of industrial base is to be promoted by giving corporate tax exemptions. Customs duty exemptions will be granted for capital items and all other required items during the operational period of the project.
Under this category, projects to manufacture and export of all non traditional products other than black tea in bulk, crepe rubber, sheet rubber, scrap rubber, coconut oil, desiccated coconut (other than desiccated coconut manufactured using continuous scale automated process technology and marketed with a quality guarantee) copra, fresh coconuts, coconut fibre will be promoted.
Presently over 33% of the total exports under the BOI is contributed by the manufacturing sector other than apparel and over 61% of the national industrial export other than apparel is contributed by the export oriented manufacturing projects operating under the BOI.
Newly targeted local market oriented sector is to be promoted by granting the same tax exemptions given to export oriented manufacturers to encourage manufacturers which substitute the imported products. Customs duty exemptions will be granted for capital and construction items during the project implementation period.
The following products are to be promoted under this category and such products are permitted to be supplied for both local and export markets.
Or any other products which give the economic benefits of the country as determined by the Hon Minister of Finance.
Projects under Strategic Development Project Act
Large Scale Projects which are in the national interest and which are likely to bring economic and social benefits to the country to change the landscape of the country preliminary through giving benefits to the general public, substantial inflow of foreign exchange, substantial employment which enhance the earning opportunities and envisaged transformation in terms of technology.
Tax exemptions upto a maximum of 25 years and other exemptions of other levies would be granted by the State depending upon the meeting the objectives referred above in the Act.