Duty-, tax-free import of raw hides sought
Wednesday, 19 March 2008
FE Report
Leather goods exporters have urged the government to offer similar fiscal incentives to the commercial importers of raw hides as enjoyed by tannery owners.
The exporters made this plea at a pre-budget discussion meeting with the National Board of Revenue (NBR) in the city Tuesday.
The NBR held the meeting with the associations of leather, chemicals, paint, cosmetics, toiletries and jewelleries.
Bangladesh Finished Leather, Leather goods and Footwear Exporters Association (BFLFEA) chairman Tipu Sultan said: "Tannery industry could utilise only 40 per cent of its production capacity due to shortage of raw hides."
Currently, the leather processing industries are not getting adequate raw hides.
Sultan said the size of the industry will expand by three times after the tanneries are shifted to special industrial estate. It will then need more raw hides.
The leather goods exporters sought duty and tax free import of raw hides for capacity utilisation of the industry and boost export of leather products.
NBR chairman said: "The government will consider widening the gap of tariff rates between finished and raw materials for the local industry."
The government will also review the provision that allows import of 10 kilogram of gold under baggage rule, he said.
Bangladesh leather goods association president Saiful Islam said: "Small and medium enterprises (SMEs) should get some tax-exemption facility, which can encourage them to involve in shoe making."
The NBR received Tk 160 million in revenue from import of Tk 1.72 billion worth raw hides last fiscal. The revenue was estimated at Tk 180 million against 1.40 billion worth of import during the first half of the current fiscal.
Leaders of the cosmetic and toiletries association said they have to import similar raw materials under different duty structure due to anomalies in HS code.
Bangladesh Jewellery Samity said the government should allow duty free import of machinery for this sector.
Centre for Policy Dialogue (CPD) researcher Golam Hossain said: "The government should fix the policy on continuation of tax holiday facility without delay. A number of companies is now indecisive on their investment here for this reason."
He also underscored the need for rational duty structure under same HS code and use of tools of anti-dumping duty to save local industry.
Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) representative said the government should fix specific criteria for transfer of technical know-how.
Leather goods exporters have urged the government to offer similar fiscal incentives to the commercial importers of raw hides as enjoyed by tannery owners.
The exporters made this plea at a pre-budget discussion meeting with the National Board of Revenue (NBR) in the city Tuesday.
The NBR held the meeting with the associations of leather, chemicals, paint, cosmetics, toiletries and jewelleries.
Bangladesh Finished Leather, Leather goods and Footwear Exporters Association (BFLFEA) chairman Tipu Sultan said: "Tannery industry could utilise only 40 per cent of its production capacity due to shortage of raw hides."
Currently, the leather processing industries are not getting adequate raw hides.
Sultan said the size of the industry will expand by three times after the tanneries are shifted to special industrial estate. It will then need more raw hides.
The leather goods exporters sought duty and tax free import of raw hides for capacity utilisation of the industry and boost export of leather products.
NBR chairman said: "The government will consider widening the gap of tariff rates between finished and raw materials for the local industry."
The government will also review the provision that allows import of 10 kilogram of gold under baggage rule, he said.
Bangladesh leather goods association president Saiful Islam said: "Small and medium enterprises (SMEs) should get some tax-exemption facility, which can encourage them to involve in shoe making."
The NBR received Tk 160 million in revenue from import of Tk 1.72 billion worth raw hides last fiscal. The revenue was estimated at Tk 180 million against 1.40 billion worth of import during the first half of the current fiscal.
Leaders of the cosmetic and toiletries association said they have to import similar raw materials under different duty structure due to anomalies in HS code.
Bangladesh Jewellery Samity said the government should allow duty free import of machinery for this sector.
Centre for Policy Dialogue (CPD) researcher Golam Hossain said: "The government should fix the policy on continuation of tax holiday facility without delay. A number of companies is now indecisive on their investment here for this reason."
He also underscored the need for rational duty structure under same HS code and use of tools of anti-dumping duty to save local industry.
Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) representative said the government should fix specific criteria for transfer of technical know-how.