Two tax measures to protect local industries shelved

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Doulot Akter Mala
Two tax measures enforced in 1996 to protect local industries remain shelved due to lack of coordination between the government's information cells and local manufacturers.
The tax measures include countervailing and anti-dumping duty that the government could impose to restrict and discourage cheap and excessive import which is stipulated in the rules of World Trade Organisation (WTO).
The government enforced those rules in 1996 empowering Bangladesh Tariff Commission (BTC) as a designated authority.
"BTC has received only eight applications in the last 14 years from local manufacturers who have sought protection of the state to survive but none of them provided all required information to the commission," said a senior BTC official.
He said BTC is empowered to take measures if local industries are affected with the cheap and excessive import.
Local manufacturers often made such complaints to the government but they did not knock the BTC for help for unknown reasons, he said expressing doubt over tax compliance and transparency of those industries.
It is surprising that BTC is not getting cooperation from local manufacturers despite repeated plea of the commission to help them by enforcing the tariff measures, said BTC Chairman Dr Md Mozibur Rahman.
In a study, the BTC has identified seven vulnerable domestic industries that could be affected by unfair international trade like dumping and subsidised exports or cheap imports.
The sectors include - refined sugar, cotton yarn, unbleached cotton fabric, polyester texturised yarn (PTY), galvanised and API tubes and pipes, incandescent lamps and fluorescent tube lights and motorcycles with an engine capacity not exceeding 250 cc.

The commission has identified the sectors out of 30 industries after analysing import data of 2004-2007.
"We have intensified efforts to create awareness among the local manufacturers about role of BTC. It is empowered to support the local industries to be competitive with imported goods," he added.
BTC held a total of 20 meetings with stakeholders including apex chamber body Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and Metropolitan Chamber of Commerce and Industry (MCCI) to discuss the available tariff measures that could protect local industries, he said.
Local manufacturers are not well-equipped to provide necessary information that could help tariff commission to investigate the matter, he added.
Domestic industry owners have to give detailed information about their production cost, prices of basic raw materials, taxes paid on different stages.