BICDA suggests duty-free import

Our Correspondent | Published: June 16, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

CHITTAGONG, June 15: Bangladesh Inland Container Depots Association (BICDA) chairman Nurul Quayyum Khan has hailed the proposed budget for the fiscal year (FY) 2014-15 terming it pro-industry and pro-people.
He said the Tk 2.5 trillion budget, up by 12.59 per cent from that of the last fiscal, was something challenging but achievable subject to a stable political situation.
Giving his reaction to the proposed budget, he said the prices of essential commodities like potato, onion, garlic, gram, pulse, ginger, spices, rice, wheat, atta, flour, salt, edible oil, sugar etc would come down as the tax at source on these items had been withdrawn.
He, however, suggested revocation of the deduction of tax at source (advance income tax) from bills for services by keeping the Section 52AA only limited to specific services such as stevedoring, private security service etc.
Currently tax at source at the rate of 10 per cent is charged on bills of inland container depots (ICDs) as per Section 52AA of Income Tax Ordinance 1984.
In a letter to the Finance Minister on June 10 Mr Khan said the private (ICDs) were making an important contribution to the export and import trade of the country. But there was very little profit in the highly-competitive sector. Moreover, the number of taxpayers was very low. Besides, it was not administratively possible to bring all services under tax at source.
Secondly, the ICDs have to pay duty ranging from 1.0 per cent to 5.0 per cent on import of container handling equipment and spare parts required for handling of containers and prefabricated steel structures for construction of warehouses or CFS (cargo freight stations).
The BICDA chairman in his letter said they proposed waiver of duty on import of the container handling equipment and spare parts for handling of containers and prefabricated steel structures.
He argued that the private ICDs were now handling the entire containerised exports and 25 per cent of containerised imports of the country. The export of readymade garments (RMG) worth US$ 22 billion were being containerised and sent to foreign destinations through the Chittagong Port by the ICDs. So in order to enable the ICDs to facilitate the export and import trade, the import of the container handling equipment and spare parts should be made duty-free, he suggested.