Economic Reporter :
The local entrepreneurs are showing reluctant to make investment in the establishment of LED chip manufacturing unit in Bangladesh, as there is discrepancy in the import duties’ structure between complete LED chip and its necessary raw materials.
LED (Light Emitting Diode) chip is one of the prime raw materials for manufacturing various sorts of LED technology based products like LED TV, light, bulb, mobile, tab, computer monitor and so on. About eight sorts of raw materials are required to make a complete LED chip. These are: LED fream, phosphor, carrier tape, plastic reel, cover tape, gold wire, die attach material/adhesive and encapsulation/resin.
Analyzing the import duties’ structure, it was found that the local manufacturers of LED technology based products have to pay less duty for the import of finished LED chip compared to the duty paid on the import of necessary raw materials for manufacturing LED chip.
Shamsul Arefin Sohel, chairman of Suntex Electronics and Engineering Ltd, said, the government should remove the high import duties on the raw materials for making LED chip for the countries greater interest.
Mentionable, the incumbent Finance Minister AMA Muhith always encourages the local entrepreneurs for making investment in the country’s various industrial sectors. During a pre-budget discussion meeting with secretaries of different ministries, Muhith said the government will emphasize more on the protection of local industries in the imminent budget for the fiscal year 2016-17.
The local entrepreneurs are showing reluctant to make investment in the establishment of LED chip manufacturing unit in Bangladesh, as there is discrepancy in the import duties’ structure between complete LED chip and its necessary raw materials.
LED (Light Emitting Diode) chip is one of the prime raw materials for manufacturing various sorts of LED technology based products like LED TV, light, bulb, mobile, tab, computer monitor and so on. About eight sorts of raw materials are required to make a complete LED chip. These are: LED fream, phosphor, carrier tape, plastic reel, cover tape, gold wire, die attach material/adhesive and encapsulation/resin.
Analyzing the import duties’ structure, it was found that the local manufacturers of LED technology based products have to pay less duty for the import of finished LED chip compared to the duty paid on the import of necessary raw materials for manufacturing LED chip.
Shamsul Arefin Sohel, chairman of Suntex Electronics and Engineering Ltd, said, the government should remove the high import duties on the raw materials for making LED chip for the countries greater interest.
Mentionable, the incumbent Finance Minister AMA Muhith always encourages the local entrepreneurs for making investment in the country’s various industrial sectors. During a pre-budget discussion meeting with secretaries of different ministries, Muhith said the government will emphasize more on the protection of local industries in the imminent budget for the fiscal year 2016-17.
