Raise ability to compete sans support of SD: Muhith

Finance Minister AMA Muhith called on the businesses on Tuesday for enhancing their ability to sustain and compete in the market without support of the Supplementary Duty (SD).
He said there will be some 'crisis' in tax system in future, as SD will have to be cut drastically next year as a part of global trade facilitation.
"Local industries need to develop their competitiveness. SD will be brought down to a nominal rate in coming years," he added.
The government imposes SD on imported products to protect local industries. In the current fiscal year (FY), 2014-15, it has cut SD on some 700 products.
The finance minister made the call at the 36th meeting of the consultative committee of National Board of Revenue (NBR). The apex chamber body -- Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) -- and NBR jointly organised the meeting at a city hotel for discussing budget proposals for FY 2015-16.
Speaking at the meeting, the finance minister said the government will re-think its plan of introducing property tax instead of the existing wealth tax from next FY, as neighbouring India has recently scrapped the system.
"NBR is working on analysing the factors, for which India has withdrawn the system."
On tobacco taxation, he said the procedure on taxing the harmful item will be changed, as the government will not be involved in micro-management.
"Earlier, we defined slabs and quality issues of tobacco items by sitting with the companies. But, this is not our concern. It is a matter of market operators."
The government will impose tax on tobacco in line with the systems followed by other countries, he said.
Tobacco products are harmful but popular, and move against their consumption should continue, he opined.
The finance minister expressed his optimism over positive impact of the new Value Added Tax (VAT) law.
"We need cooperation from businesses. VAT will be collected in different stages and all will be brought under VAT-net."
The government will need to cut customs duty gradually for global trade facilitation, he added.  
NBR chairman Nojibur Rahman moderated the programme, attended by a number of policymakers, private sector stakeholders and former bureaucrats.
State Minister for Finance and Planning M A Mannan said use of solar system, bio-gas and stove should be given due emphasis to help the sector concerned grow.
"Local cell-phone assembling industry needs to be developed to reduce import of the product."
On stakeholders' proposals to cut VAT rate, he said the rate might be set below 15 per cent.
Industry ministry secretary Mosharrof Hossain Bhuiyan also emphasised the same issue, and proposed tax cut at production stage in line with the import duty reduction.
The NBR chairman said focus will be given on expansion of tax-net, instead of imposing burden on existing taxpayers.    
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