Also demand increase of customs duty on UPVC pipe import
The Bangladesh Plastic Goods Manufacturers and Exporters Association on Tuesday demanded withdrawal of customs duty on import of moulding machines and reduction of duty on import of raw materials to 5 per cent from 25 per cent in the next budget.
It said the sector could be competitive on the international market, if the demand was met.
At a pre-budget discussion with the National Board of Revenue, the BPGMEA also demanded 100 per cent customs duty on import of UPVC pipe from existing 30 per cent to protect the local industry.
‘Though Bangladeshi plastic industries can meet total demand of domestic market, government organisations import UPVC pipe from abroad — a sign against the spirit of industrialisation in the country,’ said Ashiqur Rahman, representative of the BPGMEA.
As a part of the discussion for preparing the budget for 2012-2013 financial year, the NBR discussed with exporters without bonded warehouse facility on the day.
At the meeting, the Bangladesh Handicrafts Manufacturers and Exporters Association demanded withdrawal of source tax at the rate of 0.08 per cent on export of handicrafts products, reduction of value-added tax on sales of local boutique shops to 2 per cent from 4 per cent.
The association also demanded continuation of income tax and VAT waiver facility as it would expire in June this year.
‘Handicrafts manufacturers need such fiscal support to boost the sector as it uses 100 per cent local raw materials,’ said SU Haider, president of the association.
He also demanded an increase of rate of cash incentive from existing 20 per cent to 30 per cent and its continuation for the next five years.
At the meeting, the Bangladesh Frozen Foods Exporters Association demanded a reduction of source tax on supply of goods to 2.5 per cent from existing maximum 4 per cent and expansion of cash incentive on export of frozen foods to 15 per cent from 10 per cent.
The Association of Export Oriented Ship Building Industries of Bangladesh demanded that the government should allow duty-free import of raw materials and equipment for ships equal to or bigger than 3,000 DWT (deadweight tonnes) to encourage the industry and boost export.
Imposition of duty on import of raw materials creates discrimination among importers and discourages local shipbuilding as the government allows import of ships more than 3000 DWT without duties, they said.
The association also demanded the facility of opening back to back LCs (letters of credit) up to 75 per cent value against export on master LCs.
The Bangladesh Bi-cycle and Parts Manufacturers and Exporters Association demanded that the NBR should prevent tax evasion through under invoicing in imports of parts in order to protect local manufacturers.
NBR chairman Ghulam Hussain said that the revenue board would consider the proposals in preparing budget documents for the government.
NBR members Farid Uddin, Syed Aminul Karim and Jahangir Hossain, the Federation of Bangladesh Chambers of Commerce and Industry director Abdul Hoque, among others, spoke at the meeting.
-With New Age input
