Raise bond licence term, remove EPZ discrimination, exporters urge NBR
Friday, 12 March 2010
FE Report
Ready-made garment exporters demanded Tuesday enhancement of the term of bond licence to three years from the existing one year and addressing the discrimination between the industries located in export processing zones (EPZs) and outside.
They also demanded withdrawal of Value Added Tax (VAT) on products and services from totally export-oriented industries.
The demands were made at a pre-budget discussion with the National Board of Revenue (NBR) in the city.
Speaking on the occasion, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Salam Murshedy said industries inside the EPZs are enjoying the tax incentive facility in sharp contrast with those outside the EPZs, which are deprived of such facility.
He urged the NBR to offer equal facilities to the industries, inside or outside EPZs, to boost export earnings by helping them stay competitive in the international market.
The NBR held two pre-budget meetings with exporters on bond facility and the automobile sector. NBR Chairman Dr. Nasiruddin Ahmed chaired both the meetings.
Responding to the proposals of exporters and automobile importers, the NBR chairman said the government would frame policies in the next budget to add an impetus to industrial growth.
It would also scrutinise the proposals from the stakeholders and prepare an industry-friendly budget, he added.
Garment exporters said they have to spend time and also face harassment during renewal of bond licence every year leading to a hindrance to export. They urged the NBR to issue the bond licence for a term of three years.
The existing law provides for 60 to 80 per cent VAT exemption for a fully export-oriented industry. But the exporters sought full waiver of the tax to help boost export-earnings.
The exporters also sought the duty-free facility on import of machinery for effluent treatment plants (ETPs) as well as duty-free import of ambulance.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) representative Kamal Uddin, Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) President Habib Ullah Don, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Director Abdul Huq, and Shop Owners Association President Amir Hossain also attended the pre-budget meeting.
The reconditioned vehicle owners made a proposal to consider a vehicle as reconditioned just after withdrawal of its registration of the country of origin. Under the existing law, a vehicle is considered as reconditioned 365 days after cancellation of registration.
The car importers also demanded revision of the definition of luxury car in consideration of the poor condition of roads in the country.
Presently, cars above 2000cc are considered luxury cars, which should be raised to 3000cc, said BARVIDA president.
They also demanded withdrawal of supplementary duty on pickup vans and trucks to spur the industrial growth.
Ready-made garment exporters demanded Tuesday enhancement of the term of bond licence to three years from the existing one year and addressing the discrimination between the industries located in export processing zones (EPZs) and outside.
They also demanded withdrawal of Value Added Tax (VAT) on products and services from totally export-oriented industries.
The demands were made at a pre-budget discussion with the National Board of Revenue (NBR) in the city.
Speaking on the occasion, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Salam Murshedy said industries inside the EPZs are enjoying the tax incentive facility in sharp contrast with those outside the EPZs, which are deprived of such facility.
He urged the NBR to offer equal facilities to the industries, inside or outside EPZs, to boost export earnings by helping them stay competitive in the international market.
The NBR held two pre-budget meetings with exporters on bond facility and the automobile sector. NBR Chairman Dr. Nasiruddin Ahmed chaired both the meetings.
Responding to the proposals of exporters and automobile importers, the NBR chairman said the government would frame policies in the next budget to add an impetus to industrial growth.
It would also scrutinise the proposals from the stakeholders and prepare an industry-friendly budget, he added.
Garment exporters said they have to spend time and also face harassment during renewal of bond licence every year leading to a hindrance to export. They urged the NBR to issue the bond licence for a term of three years.
The existing law provides for 60 to 80 per cent VAT exemption for a fully export-oriented industry. But the exporters sought full waiver of the tax to help boost export-earnings.
The exporters also sought the duty-free facility on import of machinery for effluent treatment plants (ETPs) as well as duty-free import of ambulance.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) representative Kamal Uddin, Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) President Habib Ullah Don, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Director Abdul Huq, and Shop Owners Association President Amir Hossain also attended the pre-budget meeting.
The reconditioned vehicle owners made a proposal to consider a vehicle as reconditioned just after withdrawal of its registration of the country of origin. Under the existing law, a vehicle is considered as reconditioned 365 days after cancellation of registration.
The car importers also demanded revision of the definition of luxury car in consideration of the poor condition of roads in the country.
Presently, cars above 2000cc are considered luxury cars, which should be raised to 3000cc, said BARVIDA president.
They also demanded withdrawal of supplementary duty on pickup vans and trucks to spur the industrial growth.