Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) has demanded a ban on the import of garment accessories under the bond facility in the country.
“We want the ban on the import of garment accessories and packaging products as well as finished boxes for the footwear industry under this facility,” said BGAPMEA President Moazzem Hossain Moti while presenting the proposal to the National Board of Revenue (NBR) on Tuesday.
He said during a pre-budget meeting held at the conference room of the NBR in Dhaka’s Agargaon, “The local producers are able to meet 100% demand for the country’s need for garment accessories and packaging products.”
“The import of these products leaves 15% to 20% of our production capacity unused. Import of these products should be discouraged for the sake of domestic industrial development,” he said.
Moazzem Hossain Moti told The Business Standard, “Our production capacity is worth about $10 billion. On the other hand, we import garment accessories worth about $1 billion. We demand all such products be procured from us. It will save dollars and the economy will be stronger.”
He said, “Our manufacturers exported 18 crore pairs of shoes last year. For that, nine crore shoe boxes were manufactured by us and the remaining nine crore boxes were imported by the shoe exporting companies. We want this import to be discouraged. There should not be duty-free imports in this case.”
Additionally, the BGAPMEA has proposed a maximum licence duration of five years for their products.
The pre-budget meeting with business organisations and the NBR took place in two sessions on Tuesday.
In the morning session, Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA), Bangladesh Furniture Industries Owners Association (BFIOA), and Bangladesh Society for the Change and Advocacy Nexus (B-SCAN) presented their proposals.
Meanwhile, the e-Commerce Association of Bangladesh, Bangladesh Paint Manufacturers Association, Bangladesh Acid Merchant Association, and Bangladesh Solar and Renewable Energy Association (BSREA) participated in the meeting in the afternoon.
Bangladesh Furniture Industries Owners Association (BFIOA) demanded duty bond facilities for imported raw materials of partially export-oriented industries against an equivalent amount of bank guarantees.
Selim H Rahman, president of BFIOA, said, “Our member furniture producers with industrial IRC require exemption from regulatory and supplementary duties on imported raw materials after presenting standard rate VAT payment certificates.”
At the meeting, Bangladesh Frozen Foods Exporters Association proposed to reduce the existing 1% source tax on frozen fish exports to 0.25% and the abolition of advance income tax on cash incentives.
Bangladesh Paint Manufacturers Association (BPMA) demanded the withdrawal of the 5% supplementary duty imposed on local production of paints and paint-like products. The organisation also sought VAT exemption at all levels on products made from plastic recycling.
E-Commerce Association of Bangladesh proposed to waive VAT on the rent of warehouses, reduce VAT on the delivery charge from 15% to 5% and provide tax exemption for 10 years.
Bangladesh Bread, Biscuit and Confectionery Manufacturers Association claimed to keep biscuits, breads, cakes and other products VAT free.
Abu Hena Md Rahmatul Muneem, chairman of the National Board of Revenue (NBR), presided over the afternoon session of the meeting.
He said, “The businessmen should have the mentality to do business by paying VAT and taxes. Their mentality should be developed along with the country’s graduation from LDC.”
