Govt urged to lift 100pc bank guarantee against import of plastic raw materials
Tuesday, 29 June 2010
FE Report
Plastic goods manufacturers and exporters Monday urged the government to withdraw the existing provision for submitting 100 per cent bank guarantee against import of plastic raw materials.
"Plastic goods exporters have been losing money in the form of interest for providing 100 per cent bank guarantee before importing raw material," Shahedul Islam, president of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) said at a press conference in the city.
The sector has been facing severe crisis due to import barriers, he said adding that the production of around 300 plastic industries is going to be stopped due to a crisis of raw materials.
He said that a 'Memorandum of Understanding' (MoU) was signed between BPGMEA and Bangladesh Small and Cottage Industries Corporation in 2006 to set up a plastic industrial belt on 50 acres of land in Keraniganj, but still there is no visible step to implement the initiative.
He also stressed the need for removing complications in getting approval of Department of Environment (DoE) to set up new plastic industry.
The government should provide 20 per cent cash incentive so that the local products could be competitive in the global market, Mr Islam added.
The leaders also demanded to continue deducting advanced income tax at source at the previous rate at 0.25 per cent which has been proposed to increase to 1.0 per cent.
They urged the government to increase duty on printed packaging raw materials and decrease the unprinted packaging raw materials used for medicine, agro-based and food products packages as the government has imposed 20 per cent duty for both the packaged raw materials.
The BPGMEA president also called upon the government to withdraw the duty and value added tax (VAT) in buying diesel and furnace oil saying the government would be unable to provide sufficient power within two years to address the ongoing power crisis in this sector.
BPGMEA former presidents Jasim Uddin and Ferdous Wahed and general secretary Mosaddequr Rahman, among others, were present at the press conference.
Plastic goods manufacturers and exporters Monday urged the government to withdraw the existing provision for submitting 100 per cent bank guarantee against import of plastic raw materials.
"Plastic goods exporters have been losing money in the form of interest for providing 100 per cent bank guarantee before importing raw material," Shahedul Islam, president of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) said at a press conference in the city.
The sector has been facing severe crisis due to import barriers, he said adding that the production of around 300 plastic industries is going to be stopped due to a crisis of raw materials.
He said that a 'Memorandum of Understanding' (MoU) was signed between BPGMEA and Bangladesh Small and Cottage Industries Corporation in 2006 to set up a plastic industrial belt on 50 acres of land in Keraniganj, but still there is no visible step to implement the initiative.
He also stressed the need for removing complications in getting approval of Department of Environment (DoE) to set up new plastic industry.
The government should provide 20 per cent cash incentive so that the local products could be competitive in the global market, Mr Islam added.
The leaders also demanded to continue deducting advanced income tax at source at the previous rate at 0.25 per cent which has been proposed to increase to 1.0 per cent.
They urged the government to increase duty on printed packaging raw materials and decrease the unprinted packaging raw materials used for medicine, agro-based and food products packages as the government has imposed 20 per cent duty for both the packaged raw materials.
The BPGMEA president also called upon the government to withdraw the duty and value added tax (VAT) in buying diesel and furnace oil saying the government would be unable to provide sufficient power within two years to address the ongoing power crisis in this sector.
BPGMEA former presidents Jasim Uddin and Ferdous Wahed and general secretary Mosaddequr Rahman, among others, were present at the press conference.