Abu Sazzad :
Country’s trade bodies are optimist that the today’s budget for the fiscal 2015-16 will give more attention to industrial sector in the country.
The government has definitely taken practicable decision for expanding industrial sector across the country, said Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Md Atiqul Islam.
The BGMEA President urged the government to reduce the existing tax at source from 0.30 per cent on export for the next five years.
The leaders of the BGMEA have also requested to exempt the apparel makers from all kinds of taxes, including import-duty, Value Added Tax (VAT) and Advance Income Tax (AIT), and the import of construction materials for the factories to be constructed in the Garment Economic Zone.
He also demanded similar kinds of tax benefits for importing Fire Proof Colour Coating to be used as pre-fabricated building materials.
Regarding the upcoming budget, the BGMEA President opined that the budget would be a challenging one. Demanding special benefits for RMG sector, the BGMEA leader also recommended for continuation of income tax at a minimised rate of 10 per cent for the next five years.
The other demands from the apparel makers include duty free import of fire preventing and energy saving machinery for a compliant and
green industry, withdrawal of authority from ‘Custom Valuation and Internal Audit Commissionerate’ in regard to the inspection of bonded warehouse benefits enjoyed by export oriented apparel factories, finalisation of 3 per cent interest rate on loans against Effluent Treatment Plant (ETP) construction.
“We are enjoying VAT exemption on purchase of products from local market since 2013, but now, the NBR is claiming VAT from us for the previous years that we are unable to pay now,” the BGMEA president claimed.
The NBR should allow the apparel exporters to get two per cent special cash incentive, , opined the BGMEA.
Talking to Former Vice-President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Helal Uddin urged the government to bring the bank interest rates to single digit in the budget.
The high interest rate is a major challenge to investment. It also demanded that the bank interest spread should be reduced to three per cent and the bank interest rate at single digit. “Single digit bank interest rate is a must for increasing investments”, said the FBCCI leader.
The government’s decision to reduce the interest rates in savings certificates by around two per cent will be helpful reducing the bank interest rate, said the FBCCI leader.
With its budget recommendations, the FBCCI leader urged to fix the tax-free income limit for the individual taxpayers at Tk 2.75 lakh from existing Tk 2.20lakh.
The FBCCI leader also urged the government to finalise duty on import of capital machinery and raw materials to one per cent, intermediary raw materials to three per cent, locally produced raw materials to 10 percent and finished goods to 25 per cent.
He expected that the government would provide tax benefits to businesses to help them restart their production in full swing, which were hit hard due to the previous political turmoil.
He also suggested for reduction of corporate tax, particularly for banks and financial institutions for the sake of reducing bank loan interests.
Mahbub Chowdhury from Chittagong Metropolitan Chamber of Commerce and Industry demanded for allocation of Tk 5,000 crore for the development of infrastructural facilities in the port city.
Bangladesh Software and Information Services President Shameem Ahsan requested the the government to withdraw VAT on e-commerce, and impose 15 per cent tax on import of accounting software as these kinds of software are being manufactured in Bangladesh.
Meanwhile, the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) leader said on the condition of anonymity that the government would introduce tax at source on cost of making, instead of free on board (FOB) facilities, increase of cash incentive at eight per cent from existing five per cent, duty and VAT free import of fire safety equipments, and duty free import of all retail machinery.
Taking to the economist and adviser to the caretaker government, Mirza Azizul Islam said, real estate, stock markets, financial institutions and private sector industries directly contribute to GDP. But these sectors are not performing well and have failed to contribute enough to the growth. Without improving the situation, it is impossible to enhance GDP growth to the desirable target.
Country’s trade bodies are optimist that the today’s budget for the fiscal 2015-16 will give more attention to industrial sector in the country.
The government has definitely taken practicable decision for expanding industrial sector across the country, said Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Md Atiqul Islam.
The BGMEA President urged the government to reduce the existing tax at source from 0.30 per cent on export for the next five years.
The leaders of the BGMEA have also requested to exempt the apparel makers from all kinds of taxes, including import-duty, Value Added Tax (VAT) and Advance Income Tax (AIT), and the import of construction materials for the factories to be constructed in the Garment Economic Zone.
He also demanded similar kinds of tax benefits for importing Fire Proof Colour Coating to be used as pre-fabricated building materials.
Regarding the upcoming budget, the BGMEA President opined that the budget would be a challenging one. Demanding special benefits for RMG sector, the BGMEA leader also recommended for continuation of income tax at a minimised rate of 10 per cent for the next five years.
The other demands from the apparel makers include duty free import of fire preventing and energy saving machinery for a compliant and
green industry, withdrawal of authority from ‘Custom Valuation and Internal Audit Commissionerate’ in regard to the inspection of bonded warehouse benefits enjoyed by export oriented apparel factories, finalisation of 3 per cent interest rate on loans against Effluent Treatment Plant (ETP) construction.
“We are enjoying VAT exemption on purchase of products from local market since 2013, but now, the NBR is claiming VAT from us for the previous years that we are unable to pay now,” the BGMEA president claimed.
The NBR should allow the apparel exporters to get two per cent special cash incentive, , opined the BGMEA.
Talking to Former Vice-President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Helal Uddin urged the government to bring the bank interest rates to single digit in the budget.
The high interest rate is a major challenge to investment. It also demanded that the bank interest spread should be reduced to three per cent and the bank interest rate at single digit. “Single digit bank interest rate is a must for increasing investments”, said the FBCCI leader.
The government’s decision to reduce the interest rates in savings certificates by around two per cent will be helpful reducing the bank interest rate, said the FBCCI leader.
With its budget recommendations, the FBCCI leader urged to fix the tax-free income limit for the individual taxpayers at Tk 2.75 lakh from existing Tk 2.20lakh.
The FBCCI leader also urged the government to finalise duty on import of capital machinery and raw materials to one per cent, intermediary raw materials to three per cent, locally produced raw materials to 10 percent and finished goods to 25 per cent.
He expected that the government would provide tax benefits to businesses to help them restart their production in full swing, which were hit hard due to the previous political turmoil.
He also suggested for reduction of corporate tax, particularly for banks and financial institutions for the sake of reducing bank loan interests.
Mahbub Chowdhury from Chittagong Metropolitan Chamber of Commerce and Industry demanded for allocation of Tk 5,000 crore for the development of infrastructural facilities in the port city.
Bangladesh Software and Information Services President Shameem Ahsan requested the the government to withdraw VAT on e-commerce, and impose 15 per cent tax on import of accounting software as these kinds of software are being manufactured in Bangladesh.
Meanwhile, the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) leader said on the condition of anonymity that the government would introduce tax at source on cost of making, instead of free on board (FOB) facilities, increase of cash incentive at eight per cent from existing five per cent, duty and VAT free import of fire safety equipments, and duty free import of all retail machinery.
Taking to the economist and adviser to the caretaker government, Mirza Azizul Islam said, real estate, stock markets, financial institutions and private sector industries directly contribute to GDP. But these sectors are not performing well and have failed to contribute enough to the growth. Without improving the situation, it is impossible to enhance GDP growth to the desirable target.
