Provide equal policy support to non-RMG sectors

The government should provide equal policy support to all export-oriented sectors as given to the readymade garment (RMG) sector, in order to ensure product diversification and reduce dependency on a particular sector for foreign currency earning.
Plastic sector along with its some sub-sectors, including toys manufacturing, has huge potential to increase export earnings if provided with required policy support, such as withdrawal of supplementary duty (SD) on all types of toy components, reduction of corporate tax rate, withdrawal of VAT on local sales, and 20 per cent cash incentives.
Plastic toy makers and exporters made the observations at a seminar, titled 'Plastic Toy Industries of Bangladesh - A Potential Sector for Export Diversification', jointly organised by the Bangladesh Plastic Goods Manufacturers and Exporters Association, World Bank project EC4J and the commerce ministry at CIRDAP Auditorium in the city on Tuesday.
The overall export earnings from the plastic sector - direct plastic, deemed plastic and plastic toys - are projected to reach US$22 billion by 2030, while $151.69 million is estimated to earn from toy exports alone, according to a keynote paper presented at the seminar by Ferdous Ara Begum, chief executive officer of the Business Initiative Leading Development (BUILD).
Speaking at the seminar, Jashim Uddin, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), stressed the need for sector based policy support in order to identify the problems and take measures accordingly.
"Also, all sectors should get equal facilities from the government," he said, explaining that corporate tax for the RMG sector was 12 per cent while it was 30 per cent for other industries.
China is doing better in toy export as their industry is cluster based that helps source all required materials from one place, he said, adding that Bangladesh also needed the same.
The FBCCI leader also called for a reduction in land price so that small factories could relocate to the proposed industrial park.
Echoing Mr Uddin, Shamim Ahmed, president of the plastic goods manufacturers and exporters association, urged the government to withdraw supplementary duty on all types of toy components to help flourish the sector.
The country was largely dependent on imported toys even a decade back; now, local toy makers meet 90 per cent of the local demand for toys, he said.
Mr Ahmed demanded that the government increase the tariff on imported toys to $20 per kg from the existing $7.5 per kg, saying the price of imported toys was still low.
"Local toy industry, which is labour intensive, can create employment for many, especially for women. At least eight to ten people are needed to make a toy," said Yousuf Ashraf, former president of the plastic goods exporters association.
No other industry gets as equal support as the country's RMG industry gets, he said, adding that product diversification could not be possible unless similar policy support was given to all.

Munni_fe@yahoo.com