Economic Reporetr :
Plastic goods manufacturers and exporters have demanded exemption of VAT (value added tax) for the next five years.
Md Jasim Uddin, president of Bangladesh Plastic Goods Manufacturers and Exporters Association, raised the demand on behalf of the businessmen at a press conference at its Naya Paltan office in the capital on Monday.
He said, ‘Most producers, distributors and consumers of plastic goods and crockery belong to little-educated poor people who don’t have the expertise or capacity to use ECR machine to keep account of VAT. The prime minister earlier had instructed to keep plastic and crockery items that are under HS Code 39.24 out of VAT which was implemented accordingly.’
Informing that plastic goods manufacturers were enjoying VAT exemption as per the PM order till the 2017-18 budget was declared, Jasim warned of dire consequences if the existing facility is withdrawn. ‘The flow of investment in plastic goods sector will decrease, leading to the closure of all small plastic factories.’
‘People’s purchasing capacity will significantly decrease as product prices will shoot up due to VAT payment. Low quality foreign products will surely flood the country’s markets, destroying the local industries,’ he added.
The business leader said they currently pay VAT through current accounts, and they always deposit money to NBR, so that the VAT amount can be adjusted after products are sold.
‘In these current accounts already huge amount of money has been deposited. It’s totally unfair that without giving any scope to adjust our deposited money of current accounts, the proposed budget offers to adjust 10 per cent VAT from July 1,’ he added.
The association urged the finance minister to reconsider their seven proposals to ensure a businessman-friendly VAT system.
Plastic goods manufacturers and exporters have demanded exemption of VAT (value added tax) for the next five years.
Md Jasim Uddin, president of Bangladesh Plastic Goods Manufacturers and Exporters Association, raised the demand on behalf of the businessmen at a press conference at its Naya Paltan office in the capital on Monday.
He said, ‘Most producers, distributors and consumers of plastic goods and crockery belong to little-educated poor people who don’t have the expertise or capacity to use ECR machine to keep account of VAT. The prime minister earlier had instructed to keep plastic and crockery items that are under HS Code 39.24 out of VAT which was implemented accordingly.’
Informing that plastic goods manufacturers were enjoying VAT exemption as per the PM order till the 2017-18 budget was declared, Jasim warned of dire consequences if the existing facility is withdrawn. ‘The flow of investment in plastic goods sector will decrease, leading to the closure of all small plastic factories.’
‘People’s purchasing capacity will significantly decrease as product prices will shoot up due to VAT payment. Low quality foreign products will surely flood the country’s markets, destroying the local industries,’ he added.
The business leader said they currently pay VAT through current accounts, and they always deposit money to NBR, so that the VAT amount can be adjusted after products are sold.
‘In these current accounts already huge amount of money has been deposited. It’s totally unfair that without giving any scope to adjust our deposited money of current accounts, the proposed budget offers to adjust 10 per cent VAT from July 1,’ he added.
The association urged the finance minister to reconsider their seven proposals to ensure a businessman-friendly VAT system.
