Economic Reporter :
Impose of regulatory duty on imported copper tube, bar and plates by the National Board of Revenue (NBR) has made a big blow to the country’s emerging cable, electrical and electronics sectors as these copper items are very essential raw materials of the sectors.
Terming the NBR’s such initiative as not industrial-friendly, the industry insiders said impose of tax on copper tube will badly affected the booming local electronics industry.
Through releasing a gazette notification on December 6, the NBR has imposed 15; 15 and 10 per cent regulatory duties on imported copper tube, copper bar and copper plate. Earlier, there were no regulatory duties on those items. In addition, the importers of those items had to pay overall 31.07 per cent; 37.07 per cent and 37.07 per cent duties on copper tube, copper bar and copper plate respectively.
Now, the local manufacturers of ware, cable, refrigerators, air conditioners, television, motor, fan, switch, socket and other electrical and electronics products now have to count more duties for imposing regulatory duties, putting a negative impact on remarkable progress in these sectors.
Copper tube is an essential raw material for manufacturing highest quality fridges and air conditioners. Thus, imposing raw material on this item would increase the production cost of electronics items.
Through providing wrong and fake information to the NBR, a vested quarter, who wants to deter the flourish of local industry, has provoked the board to impose regulatory duties on those copper items, the local entrepreneurs claimed.
Before imposing regulatory duties on copper tube, bar and plate, the board should discuss with the stakeholders, they said adding, the board’s such initiative will put the huge investments of local entrepreneurs at stake. In addition, the foreign investment in the country’s potential electrical and electronics sectors would be discouraged.
The local entrepreneurs believe that a vested quarter is engaged in deep conspiracy for impeding the country’s advancement towards the technology based industrialization process.
It was learnt that an organisaiton is going to set up a manufacturing factory of copper tube, bar and plate in Bangladesh. They will start the installation of machinery to go for production in next April.
The local users of copper tube expressed their grave concern that the company would not be able to produce highest standard copper tube like the imported ones. To protect only one company, the country’s entire electronics’ industry was pushed to peril. At present, there is no factory of producing high quality copper tube used in the heavy industries.
Mujibur Rahman, chairman of BRB Cables, said the production cost would be gone up for imposing regulatory duties on the copper items, a prime raw material for producing cables.
MA Razzak Khan, chairman of Minister Hi-Tech Park, said abrupt impose of regulatory duties on these copper items is totally illogical. “We, the local electronics products manufacturers, will be badly affected for such regulatory duties.”
The NBR should not take such an important decision without discussing with the genuine local entrepreneurs, he said adding, the duties on the prime raw material for fridges and air conditioners will increase the production cost.
In Bangladesh, there is no company for manufacturing highest quality copper tube, Khan said adding: “It is beyond understandable why NBR imposed regulatory duties on such fully import-depended item.”
Uday Hakim, operative director of Walton Group, urged the NBR for reconsidering the decision as it is harmful for the local industrialization.
For the increase of production cost of electronics products for the duty hike on raw materials, uneven competition between locally made and imported products will be started. Thus, the local entrepreneurs may loss their huge investment in the country’s electronics sector, Hakim added.
“If the local manufacturers use alternative technology instead of copper tube, the products quality will be come down heavily and thus a negative image on the industrial goods of Bangladesh will be created in the global markets,” he noted.
For the greater interest of the country’s emerging electronics industry, the NBR should withdraw the imposed duty on copper tube, bar and plates, Hakim added.
Impose of regulatory duty on imported copper tube, bar and plates by the National Board of Revenue (NBR) has made a big blow to the country’s emerging cable, electrical and electronics sectors as these copper items are very essential raw materials of the sectors.
Terming the NBR’s such initiative as not industrial-friendly, the industry insiders said impose of tax on copper tube will badly affected the booming local electronics industry.
Through releasing a gazette notification on December 6, the NBR has imposed 15; 15 and 10 per cent regulatory duties on imported copper tube, copper bar and copper plate. Earlier, there were no regulatory duties on those items. In addition, the importers of those items had to pay overall 31.07 per cent; 37.07 per cent and 37.07 per cent duties on copper tube, copper bar and copper plate respectively.
Now, the local manufacturers of ware, cable, refrigerators, air conditioners, television, motor, fan, switch, socket and other electrical and electronics products now have to count more duties for imposing regulatory duties, putting a negative impact on remarkable progress in these sectors.
Copper tube is an essential raw material for manufacturing highest quality fridges and air conditioners. Thus, imposing raw material on this item would increase the production cost of electronics items.
Through providing wrong and fake information to the NBR, a vested quarter, who wants to deter the flourish of local industry, has provoked the board to impose regulatory duties on those copper items, the local entrepreneurs claimed.
Before imposing regulatory duties on copper tube, bar and plate, the board should discuss with the stakeholders, they said adding, the board’s such initiative will put the huge investments of local entrepreneurs at stake. In addition, the foreign investment in the country’s potential electrical and electronics sectors would be discouraged.
The local entrepreneurs believe that a vested quarter is engaged in deep conspiracy for impeding the country’s advancement towards the technology based industrialization process.
It was learnt that an organisaiton is going to set up a manufacturing factory of copper tube, bar and plate in Bangladesh. They will start the installation of machinery to go for production in next April.
The local users of copper tube expressed their grave concern that the company would not be able to produce highest standard copper tube like the imported ones. To protect only one company, the country’s entire electronics’ industry was pushed to peril. At present, there is no factory of producing high quality copper tube used in the heavy industries.
Mujibur Rahman, chairman of BRB Cables, said the production cost would be gone up for imposing regulatory duties on the copper items, a prime raw material for producing cables.
MA Razzak Khan, chairman of Minister Hi-Tech Park, said abrupt impose of regulatory duties on these copper items is totally illogical. “We, the local electronics products manufacturers, will be badly affected for such regulatory duties.”
The NBR should not take such an important decision without discussing with the genuine local entrepreneurs, he said adding, the duties on the prime raw material for fridges and air conditioners will increase the production cost.
In Bangladesh, there is no company for manufacturing highest quality copper tube, Khan said adding: “It is beyond understandable why NBR imposed regulatory duties on such fully import-depended item.”
Uday Hakim, operative director of Walton Group, urged the NBR for reconsidering the decision as it is harmful for the local industrialization.
For the increase of production cost of electronics products for the duty hike on raw materials, uneven competition between locally made and imported products will be started. Thus, the local entrepreneurs may loss their huge investment in the country’s electronics sector, Hakim added.
“If the local manufacturers use alternative technology instead of copper tube, the products quality will be come down heavily and thus a negative image on the industrial goods of Bangladesh will be created in the global markets,” he noted.
For the greater interest of the country’s emerging electronics industry, the NBR should withdraw the imposed duty on copper tube, bar and plates, Hakim added.
