FE Report
Photographic industry has sought withdrawal of Value Added Tax (VAT) for survival of the sector that is gradually losing its past glory with the fast expansion of digital technology.
In the proposed budget, the government increased VAT rate for the sector to 7.5 per cent from existing 4.5 per cent for the sector.
Bangladesh Photographic Association leaders urged the government to withdraw VAT on the sector as it has turned into a sick industry.
The association leaders have found 50 per cent of the printing laboratories faced closures as the demand for picture production is declining gradually to 25-30 per cent every year.
"People have adopted digital technology to preserve pictures. Now-a-days, only a handful people print picture without specific reason," Md Jahurul Islam, president of Bangladesh Photographic Association said.
Also, some businessmen print low quality substandard pictures through computer printers, instead of laboratory printer, he added.
"The government imposed VAT on photo publishers while lab printing and colour printing photo publishers remained out of the purview of VAT," he said.
Such discriminatory policies hinder the businesses of genuine photo publishers, he added.
Photo publishing industry is not a specialised organisation or business, Mr Islam said.
The publishers have to pay 15 per cent VAT at import stage and 3.0 per cent Advance Trade VAT (ATV). Also, they are paying 4.5 per cent VAT on photo printing.
Photo publishers are paying an insignificant amount of VAT as a small sector. Increase in VAT would destroy the industries as no new business started in the last three years in this sector.
Considering financial crunch, the industry insiders sought either full waiver of VAT or its reduction to maximum 3.0 per cent.
