Economic Reporter :
Ceramic industry of Bangladesh has been going through a tough time since the outbreak of Covid-19 virus all over the world.
Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) has said that the proposed budget for fiscal year 2020-2021 has not reflected the association’s proposal to the government.
The proposed budget has imposed 10 percent supplementary duty on all kind of ceramic sanitary products at production level.
Even in the last fiscal year, the supplementary duty was zero percent at production level. Now it has become a severe blow to the ceramic industry of the country.
So on June 16, BCMEA sent a letter to the National Board of Revenue (NBR) urging it to review the decision of the newly imposed supplementary duty in the proposed budget and withdraw it.
They wrote in the letter that the decision would make the local industry more vulnerable. “The imposition of 10 percent supplementary duty at the production level will increase the production cost by 11.5 percent,” the letter said.
“The companies are currently paying 15 percent VAT. After adding the 10 percent supplementary duty, it will be a total of 26.5 percent VAT,” it read.
BCMEA also thinks that the decision is going to put domestic products into an uneven competition with imported goods.
They fear that the investment in the industry might be hurt with the imposition of the supplementary duty as it will trigger the prices both in domestic and international markets.
Ceramic industry of Bangladesh has been going through a tough time since the outbreak of Covid-19 virus all over the world.
Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) has said that the proposed budget for fiscal year 2020-2021 has not reflected the association’s proposal to the government.
The proposed budget has imposed 10 percent supplementary duty on all kind of ceramic sanitary products at production level.
Even in the last fiscal year, the supplementary duty was zero percent at production level. Now it has become a severe blow to the ceramic industry of the country.
So on June 16, BCMEA sent a letter to the National Board of Revenue (NBR) urging it to review the decision of the newly imposed supplementary duty in the proposed budget and withdraw it.
They wrote in the letter that the decision would make the local industry more vulnerable. “The imposition of 10 percent supplementary duty at the production level will increase the production cost by 11.5 percent,” the letter said.
“The companies are currently paying 15 percent VAT. After adding the 10 percent supplementary duty, it will be a total of 26.5 percent VAT,” it read.
BCMEA also thinks that the decision is going to put domestic products into an uneven competition with imported goods.
They fear that the investment in the industry might be hurt with the imposition of the supplementary duty as it will trigger the prices both in domestic and international markets.
