Motorcycle manufacturers and exporters on Sunday demanded that the National Board of Revenue should increase supplementary duty on import of complete knock down (CKD) and complete built unit (CBU) motorcycles to 60 per cent from 30-45 per cent to protect the local manufacturing industries.
At a pre-budget discussion with the NBR, local investors in automobile sector also demanded the NBR to continue its policy support including increasing the number of machineries to be built at own plants for getting value-added tax exemption as a manufacturer under the Statutory Regulatory Order-213 to attract more companies in motorcycle manufacturing sector.
‘The NBR should increase SD on import of CBU and CKD motorcycles to protect local manufacturers and to flourish large scale manufacturing industries in the country which will also generate more employment scope and increase export earnings,’ said Ilias Kanchan, representative of Motorcycle Manufacturers and Exporters Association Bangladesh.
He said that total duty on import of CBU and CKD in neighboring countries including India and Thailand was very high compared to Bangladesh.
Currently, Bangladeshi importers pay a total of 127 per cent duties on import of CBU including 45 per cent SD and 107 per cent duties on import of CKD including 30 per cent SD while Indian importers have to pay a total of 155 per cent duties, he said.
On the other hand, Motorcycle Manufacturers and Assemblers Association of Bangladesh demanded for continuing the VAT exemption facility which is going to expire in June 2014.
MMAAB also demanded for reducing SD on import of CKD motorcycles for few more years so that assemblers can get time to shift to manufacturing level.
MMAAB president Motiur Rahman, also managing director of Uttara Motors, said that Bangladesh had a huge prospect of motorcycle manufacturing. But assemblers need more time to enter into manufacturing industries.
He also said that the plants which produce some limited components of motorcycles get VAT exemption under the SRO-213 and the NBR should provide such exemption for all motorcycle manufacturers without limiting the number of components.
‘More investors will enter in motorcycle manufacturing industries if the NBR does so,’ he said.
At the meeting, Bangladesh Spare Parts Merchants Association demanded to reduce duty on import of tyres for commercial vehicles including bus to 12 per cent from existing 25 per cent.
Bangladesh Cargo Vessels Owners Association demanded to allow carrying capital machinery through Bangladeshi ships from India.
Currently, more than 300 ships transport fly ash from India but they are not allowed to carry capital machinery.
NBR member Nasir Uddin said that they would consider the proposals in coming budget in a bid to flourish large manufacturing industries in the country.
NBR members Bashir Uddin Ahmed, Jahangir Alam, Federation of Bangladesh Chambers of Commerce and Industry director Abdul Haque, among others, spoke at the meeting.
-With New Age input
