BPGMEA seeks reduction in import duty on raw materials
FE Report | Thursday, 3 March 2011
FE Report
The plastic sector businesses demanded reduction in import duty on raw materials to 3.0 per cent from existing 5.0 per cent and sought withdrawal of tax on import of capital machinery. Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) made the demands Wednesday at a pre-budget discussion with the National Board of Revenue (NBR). NBR chief Dr. Nasiruddin Ahmed was in the chair. BPGMEA president Shahedul Islam Helal, secretary general Rahman Nannu, vice president Shamim Ahmed, former president ASM Kamal Uddin, FBCCI adviser Manzur Ahmed attended the meeting. The association leaders urged the NBR to withdraw 3.0 per cent duty from plastic mould and capital machinery to reduce production cost of plastic goods so that those can be sold at affordable prices at local market. They said there is no petrochemical industry in the country. Plastic goods manufacturers have to import all the raw materials for the industry. The association has thus proposed 3.0 per cent duty instead of the existing 5.0 per cent. The BPGMEA president has sought 20 per cent cash incentives for the sector as the shipment cost is higher. He also proposed to extend the tenure of bond facilities to two years from the existing one year. They also proposed to impose anti-dumping duty on imported plastic products and raise the supplementary duty (SD) to 100 per cent from 60 per cent for finished products. Talking to the FE, Shahedul Islam Helal said: "the local industries have to bear extra cost due to 5.0 per cent advance trade VAT on local products. We have urged the government to set it below 1.0 per cent." Some spare parts are imported paying 7.0 per cent duty and 15 per cent VAT, which should enjoy facilities like capital machinery, he suggested. The NBR chairman assured the local plastic industries of providing necessary support to stay competitive in the international market.
The plastic sector businesses demanded reduction in import duty on raw materials to 3.0 per cent from existing 5.0 per cent and sought withdrawal of tax on import of capital machinery. Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) made the demands Wednesday at a pre-budget discussion with the National Board of Revenue (NBR). NBR chief Dr. Nasiruddin Ahmed was in the chair. BPGMEA president Shahedul Islam Helal, secretary general Rahman Nannu, vice president Shamim Ahmed, former president ASM Kamal Uddin, FBCCI adviser Manzur Ahmed attended the meeting. The association leaders urged the NBR to withdraw 3.0 per cent duty from plastic mould and capital machinery to reduce production cost of plastic goods so that those can be sold at affordable prices at local market. They said there is no petrochemical industry in the country. Plastic goods manufacturers have to import all the raw materials for the industry. The association has thus proposed 3.0 per cent duty instead of the existing 5.0 per cent. The BPGMEA president has sought 20 per cent cash incentives for the sector as the shipment cost is higher. He also proposed to extend the tenure of bond facilities to two years from the existing one year. They also proposed to impose anti-dumping duty on imported plastic products and raise the supplementary duty (SD) to 100 per cent from 60 per cent for finished products. Talking to the FE, Shahedul Islam Helal said: "the local industries have to bear extra cost due to 5.0 per cent advance trade VAT on local products. We have urged the government to set it below 1.0 per cent." Some spare parts are imported paying 7.0 per cent duty and 15 per cent VAT, which should enjoy facilities like capital machinery, he suggested. The NBR chairman assured the local plastic industries of providing necessary support to stay competitive in the international market.