Terming the proposed budget for the fiscal 2014-15 ‘forward looking and business and industry friendly,’ Exporters Association of Bangladesh (EAB) on Saturday said that the new budget would largely help flourish the export-oriented industries of the country.
“The proposed budget offers various incentives, reduced tax on industrial raw materials, waived duties on fire safety equipment and provided tax holiday for the export-oriented industries. Such budgetary measures will definitely help enhance competitiveness of local industries and later it would act as a catalyst of export promotion,” said EAB in its reaction through a press statement issued yesterday.
The statement signed by EAB President Abdus Salam Murshedy said, “We welcome the budgetary steps taken, for instance, offer of 20 per cent tax rebate for factory relocation away from Dhaka should encourage both the tannery industry and other sectors to move away from the capital city.”
Besides, steps also taken to extend the tax holiday up to the year 2019, building 32 new technical training centers to develop skilled manpower, extension of time limit for repayment of industrial term-loan for the frozen foods industries and developing five new export processing zones.
“All these measures are praiseworthy,” said EAB president, adding, “I hope such measures would bring huge positive impact on the export-oriented industries and these would also help enlarge our export basket.”
Apart from this, EAB, the apex trade body of the country’s export sector, observed that some measures, including imposition of 1.0 per cent green tax, tax increase on Bus Bar Trucking system to 5.0 per cent from 2.0 per cent, imposition of tax at a rate of 30 per cent on individual tax payers who’s annual income exceeding Tk 44.20 lakh and enhancement of 30 per cent surcharge from 15 per cent on wealth tax, would hurt the export sectors indirectly.
The Association also put forward an eight-point recommendation for the inclusion of the Finance Bill.
The recommendations are: fixation of single digit interest rate for the entrepreneurs those who want to set up industries at the underdeveloped areas of the country, withdrawal of the proposed green tax, Tk 500 crore block allocation for skilled development programme, continuation of 2.0 per cent tax on Bus Bar Trucking system, fixation of 0.30 per cent tax at source for all export-oriented industries, establishing sector wise EPZs, bringing uniformity of exchange rate for all export commodities and building the deep sea-port within the shortest possible time.
