The country's plastic goods manufacturers have sought necessary fiscal supports in the upcoming national budget to facilitate smooth growth of the sector.
To this effect, they placed a set of proposals to the government such as a waiver of import duty, value-added tax (VAT) and supplementary duty on imported machinery and spare parts for the plastics industry.
They suggested including this sector in the Statutory Regulatory Order (SRO) that was issued to ensure such duty facility for different important sectors like BTMA and BGMEA.
Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) placed the proposals for the national budget of the fiscal year (FY) 2022-23 at a press conference at its city office on Thursday.
Plastics sector will be able to contribute more to the economy if the required facilities are provided, they observed.
The manufacturers also proposed fixing import duty on the basic raw materials at 1 to 3 per cent from the existing 5.0 per cent in the budget.
They sought exemption from supplementary duty on all kinds of polythene bags made from polyethylene. The government imposed 5.0 per cent supplementary duty on the product.
On the other hand, the BPGMEA proposed to impose an increased amount of supplementary and regulatory duties on imported finished plastic products.
Substandard plastic goods from different countries like China and India are entering Bangladesh market through under-invoicing though Bangladesh produces global standard products, they mentioned.
The apex body also observed that the corporate tax should be 10 per cent uniformly for all types of export-oriented industries including deemed exporters.
So far the associations related to the apparel sector like BGMEA and BKMEA are enjoying the 10 per cent corporate tax benefit.
They also proposed extending tax holiday facility for the plastics sector to help investment, as the sector has become an important one considering its position in the country.
Shamim Ahmed, president of the BPGMEA, delivered a written speech, while former presidents, among others, were present at the event.
According to data available with the association, more than 5,000 small, medium and large plastics manufacturing units are now in operation in Bangladesh. Over one million people are engaged in this sector.
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