Poor supply of banderole hits beverage business
Wednesday, 2 September 2009
Jasim Uddin Haroon
The country's leading beverage and toiletries manufacturers said Monday poor supply of banderole by the government is affecting their business despite high demand for products during the month of Ramadan.
Banderole are used on the bottles of soft drinks, mineral waters and packets of soaps and cigarettes to show that value added tax (VAT) has been paid at production stage.
Security Press Corporation, Bangladesh Limited (SPCBL) supplies this to manufacturers after approval by the National Board of Revenue (NBR).
Some of the companies have warned of forced closure of their plants if the banderole supply problem lingers.
The country's leading companies--Dhaka Tobacco, Abul Khair Group, Unilever Bangladesh, Square Toiletries, Partex Beverage, Transcom Beverage, Akij Food and Beverage Limited and Pran Group-- have already expressed their concern to the NBR recently.
One senior executive at the Akij Food and Beverage told the FE that his company was facing serious troubles in running plants as the banderole are required at the production stage.
The government introduced banderole system in 2001 mainly to ensure VAT collection at production stages.
According to the NBR over Tk 50 billion worth of VAT is mobilised through issuing banderole in a year.
Enamul Hoque, a senior official at the NBR, told the FE Monday: "Yes, there is a crisis of banderole in recent weeks."
He also said the NBR is paying to the national security press regularly, but it is making delay due to operation of old printing machines.
The supply shortage is not only affecting revenue mobilisation but also reducing the productivity, he added.
The NBR official admitted that many manufactures had complained to the NBR.
When contacted, Azhar Uddin, general manager of SPCBL, said that on a number of occasions they failed to meet the demand for banderole.
The country's leading beverage and toiletries manufacturers said Monday poor supply of banderole by the government is affecting their business despite high demand for products during the month of Ramadan.
Banderole are used on the bottles of soft drinks, mineral waters and packets of soaps and cigarettes to show that value added tax (VAT) has been paid at production stage.
Security Press Corporation, Bangladesh Limited (SPCBL) supplies this to manufacturers after approval by the National Board of Revenue (NBR).
Some of the companies have warned of forced closure of their plants if the banderole supply problem lingers.
The country's leading companies--Dhaka Tobacco, Abul Khair Group, Unilever Bangladesh, Square Toiletries, Partex Beverage, Transcom Beverage, Akij Food and Beverage Limited and Pran Group-- have already expressed their concern to the NBR recently.
One senior executive at the Akij Food and Beverage told the FE that his company was facing serious troubles in running plants as the banderole are required at the production stage.
The government introduced banderole system in 2001 mainly to ensure VAT collection at production stages.
According to the NBR over Tk 50 billion worth of VAT is mobilised through issuing banderole in a year.
Enamul Hoque, a senior official at the NBR, told the FE Monday: "Yes, there is a crisis of banderole in recent weeks."
He also said the NBR is paying to the national security press regularly, but it is making delay due to operation of old printing machines.
The supply shortage is not only affecting revenue mobilisation but also reducing the productivity, he added.
The NBR official admitted that many manufactures had complained to the NBR.
When contacted, Azhar Uddin, general manager of SPCBL, said that on a number of occasions they failed to meet the demand for banderole.