¹[52U. (1) The bank or any other financial institution extending any credit facility under a local letter of credit or any other financing agreement, not being a financing arrangement under sub-section (2), for purchasing any goods in Bangladesh by a person (hereinafter referred to as “Person A”) from any person (hereinafter referred to as “Person B”) for the purpose of trading, or of reselling after process or conversion shall deduct, at the time of paying or crediting to Person B, tax at the rate of three percent (3%) of the amount so paid or credited in relation to the purchase by Person A.

(2) The bank or any other financial institution extending any credit facility to a distributor under a financing arrangement in which a person (hereinafter referred to as “Person C”) receives payments from such bank or the financial institution against the invoice or sale of goods to its distributor (hereinafter referred to as “Person D”) shall deduct, at the time of paying or crediting payment to Person C, tax at the rate of one percent (1%) of the amount so paid or credited in relation to the goods invoiced to Person D.

(3) ²[The tax shall be deducted at the rate of two percent (2%)] in the cases of local letter of credit or any other financing agreement opened or made for the purchase or procurement of rice, wheat, potato, onion, garlic, peas, chickpeas, lentils, ginger, turmeric, dried chillies, pulses, maize, coarse flour, flour, salt, edible oil, sugar, black pepper, cinnamon, cardamom, clove, date, cassia leaf, computer or computer accessories, jute, cotton, yarn and all kinds of fruits.

³[***]

Explanation.- For the purpose of this section, "distributor" means a person who performs the function of supply of finished goods produced by another person to the end customer directly or through any other intermediary.]