CCCI calls for withdrawal of VAT on port services

CHITTAGONG, Feb 25: President of Chittagong Chamber of Commerce and Industry Mahbubul Alam has urged the Chittagong Port Authority to withdraw the VAT (value added tax) imposed by the port authority on all kinds of its services considering its negative impact on the national economy.

He made the request in a letter sent to the Chairman of the National Board of Revenue Md Mosharraf Hossain Bhuiyan on Saturday.

The CCCI president said the overall cost of the port users will go up and it will have a very negative impact on the end users -- the general consumers -- if the VAT is imposed.

In the letter, he said that the VAT imposed earlier on the issuance and renewal of trade license, import registration certificate (IRC) and export registration certificate (ERC) acted as obstacles to new investment and sustained economic growth.

That is why imposition of VAT at source on different kinds of fee, royalty and charges was treated as impediments to trade and business, he added.

Over the last few years, the cost of doing business has increased and the national target of the export earnings could not be achieved. Under such a circumstance, the businesses will face extra pressure with the imposition of VAT on port services, the CCCI president said.

The imposition of VAT will enhance production cost in factories, which will affect the national and international trade and business and general consumers of the country, he added.

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