Small and Medium Enterprises Foundation on Monday demanded an increase of cash incentive on export of agro-processed and handicraft products to 30 per cent from the existing 20 per cent with a view to promoting the sectors to grow up.
At a pre-budget meeting with the National Board of Revenue, the SME Foundation also recommended the revenue board to introduce 20 per cent cash on export of plastic products to help the sector survive on the competitive international market.
The foundation suggested increasing cash incentive for leather and footwear products to 20 per cent from the current 15 per cent.
SME Foundation consultant Mohammad Shahabuddin, also a former member of the revenue board, placed a set of recommendations of the foundation at the meeting presided over by NBR chairman Ghulam Hussain.
The foundation also sought waiver or reduction of duties and value-added tax on importing basic raw materials to protect local industries and to make competitive the small and medium enterprises.
SME Foundation, a state-owned umbrella working for expansion of the country’s small medium enterprises sector, wanted withdrawal of duty and VAT on import of raw materials for light engineering sector, reduction of duty on import of raw materials for plastic and melamine sectors to 12 per cent from the existing 25 per cent.
The foundation also sought an increase of supplementary duty to 60 per cent from the current 20 per cent for electric switch, socket, plug and multi-plug, spare parts of electric fan to 60 per cent from 45 per cent.
It recommended withdrawing duty and VAT on import of gas generator and generator parts and increase of supplementary duty to 100 per cent from the current 30 per cent on import of UPVC, PVC, PPR, PE and HDPE plastic pipes as local industries were capable to meet the demand of domestic market.
The foundation wanted withdrawal of 0.8 per cent income tax on export of handicraft products and an increase of VAT and tax-free facility for the sector.
It suggested that the NBR should fix 3 per cent VAT on SMEs which were not capable of bookkeeping.
SME Foundation managing director Mujibur Rahman, NBR members Syed Aminul Karim and Jahangir Hossain, among others, was present at the meeting.
At a separate meeting with the NBR, the Bangladesh Optical Industries and Traders Association demanded withdrawal of supplementary duty on import of plastic frame, metal frame, sunglass and reading frame.
-With New Age input
