CCCI opposes tariff rate changes on raw material

FE Team | Published: June 09, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The Chittagong Chamber of Commerce and Industry (CCCI) has termed the budget for FY 2007-08 agro-based and social development friendly and said the proposal for allocating Tk 11 billion as export subsidy will facilitate the country's export growth.
The CCCI President Saifuzzaman Chowdhury in a statement Friday hailed the government for lifting the entire import duty from edible oil and lentil and also continuing the duty exemption facilities on some other essential items including rice, wheat and gram to keep their prices at tolerable levels.
Also praising the government for splitting the existing Equity Entrepreneurship Fund (EEF) into two funds - one for agriculture and another for information communication (IT) - with proposing allocation of Tk 1.0 billion for each.
The CCCI, however, stressed the need for further enhancement of the proposed funds with a view to accelerating the growth of the potential sectors.
It also hailed the government for giving emphasis on reduction of discriminatory power of the tax officials, simplification of tax-payment systems and ensuring transparency and accountability in the tax administration.
The Chamber also appreciated the proposal for enhancing the tax-exempted income limit for individual taxpayers to Tk 150,000 from the exiting Tk 120,00 and also withdrawing the provision for deducting tax at source from the credit-card bills.
It, however, said the proposal for implosion of a 45 per cent tax on mobile phone operators and also a 35 per cent tax on the listed operators will definitely help activate the country share market.
Although the Chamber praised the government for the withdrawal of a 4.0 per cent development surcharge from import stage, it said the change in the previous tariff rate will affect the country's industrial growth by pushing up the import costs of capital machinery and raw materials.
The CCCI President also criticised the proposal for reintroducing the pre-shipment inspection (PSI) system for the import of clinker, saying that both the production cost and the price of cement will go up further in the local market, affecting the growth of construction sector.
He also observed that the proposed withdrawal of the existing zero tariff facilities from import of computer accessories and textile machinery could impede the growth of the two sectors.
In its reaction, the Bangladesh Jute Spinners Association (BJSA) also praised the Finance Adviser for proposing a series of measurers, especially setting priorities for checking inflation, reducing poverty, giving a boost to rural economy and protecting the local industries.
The BJSA President Sabbir Yusuf in a press statement, however, suggested that the government should ensure transparency in its administration to get the maximum benefits from the proposed budget.
He appreciated the government for proposing enhanced allocations for the sectors like power, infrastructure and education, simplification of the tax payment systems and enhancement of the minimum tax-exempt limit to Tk 150,000 from the existing Tk 120,000 for individual taxpayers.
Mentioning electricity as the main driving force of the economy, the BJSA emphasised the need for further enhancement of the budgetary allocation for the development of the country's power sector.
Sabbir, however, urged the government for raising the rate of subsidy on export of jute goods to 10 per cent from the current level of 7.5 per cent.
He also appealed to the government for withdrawal of the existing provision for deduction of a 5.0 per cent as income tax at source from the cash subsidy.
The Association, however, suggested that the government should establish a special fund for providing loans at 3.0 per cent rate of interest to the industrial operators for purchase of power generators.
On the other hand, the Bangladesh Chamber of Industries (BCI) also hailed the government for lifting the provision for allowing purchase or construction of flats/house, land and cars with untaxed money.