The furniture industry owners have urged the government to slash duty on import of raw materials and offer cash support to stay competitive in the international market.
They made the plea at a pre-budget meeting with the National Board of Revenue (NBR) Monday.
Small, medium and large business associations attended the meeting and placed their pre-budget proposals for fiscal year (FY) 2014-15.
NBR member (customs policy) Md Farid Uddin chaired the pre-budget meeting.
Bangladesh Furniture Industries Owners Association president Selim H Rahman proposed reduction of tax to 12 per cent from the existing 74 per cent on lacquer and wood cuttings.
They said lacquered furniture is 50 per cent more expensive than varnished types due to high taxes on it.
The association leaders also sought tax benefit on sand paper, screw bolt, lock and handles.
They expressed the hope that prices of furniture could be reduced in the local market and export in the international market with the tax benefit.
Furniture industry owners expressed their grievances over a recent decision of NBR to allow luxury hotels enjoy tax benefit on import of furniture.
Bangladesh Soybean and Soya Food Products Association demanded duty-free facility and exemption of VAT on import of raw materials of baby food.
The association leaders said they have to import isolated soya protean, rice protean, cashew nut, sun flower oil as raw material of baby food. Currently, high import duty is imposed on those raw materials which should be reduced.
Bidi industry owners demanded increase of tax on cigarettes to make tax structure rational.
Bangladesh Engineering Industry Owners Association (BEIOA) president Abdur Razzak proposed tax benefit on investment of plants, machinery and equipments of cottage industries.
BEIOA leader demanded to increase the VAT free ceiling on business turnover to Tk 10 million from Tk 6.0 million, reduction of VAT to 3.0 per cent on light engineering sector from the existing 15 per cent, exemption of VAT om import of raw materials for light engineering sector.
Bangladesh Stainless Steel Pipe Manufacturing Association sought reduction of import duty on raw materials to 5.0 per cent from the existing 10 per cent.
In the meeting, local businesses urged the NBR for preventing under invoicing in import of finished goods.
Responding to the proposal, NBR member sought cooperation of the local businesses to check under invoicing and false declaration on import of goods.
