Businesses for reconsideration of some measurers about duty, VAT
Dhaka, June 21 (UNB) – Business leaders have urged the government to consider different measures relating to duty, VAT and income tax proposed in the budget for FY 13, including reinstatement of income tax at source to previous rates from the proposed 1.2 percent.
They came up with the demands when leaders of the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI), Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA), Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Textiles Mills Association (BTMA) met Finance Minister AMA Muhith at his office on Thursday.
FBCCI president AK Azad along with the leaders of other associations urged the Finance Minister to reinstate the existing rates of income tax at source of 0.60 percent and 0.70 percent (deemed export) from the proposed 1.2 percent considering the crisis in the Eurozone and high bank interest rates.
The FBCCI president urged the Finance Minister to determine the duty on import of capital machinery and other accessories at 1 percent from the existing 1 percent and 3 percent as well as to impose zero tariff on import of capital machinery for the 100 percent export-oriented industries.
Mentioning that the recent unrest in Ashulia industrial belt, BGMEA president M Shafiul Islam Mohiuddin said the confidence of the consumers has fallen in the last 10 days and there will be a stress on exports.
Due to the fall in global demands, he said, they had to compromise in their export prices alongside lagging behind in lead time. Besides, the power and energy tariff hike in a couple of phases coupled with high bank interest rates have pushed up the production cost by 12 percent, he alleged.
Echoing the demand of the BGMEA president, BKMEA president AKM Selim Osman urged the Finance Minister to keep the existing rate of income tax at source from the proposed 1.2 percent.
In response, the Finance Minister said the garment sector is the strength of the country as it had proved that it could reach the height. “There’re some problems and we’ll try to be helpful.”
The Finance Minister also agreed to withdraw new VAT on production stage of essential aluminum crockery items and VAT on its aluminum ingot and scrap.
About reconditioned cars, Muhith said the reconditioned cars have turned into a nuisance adding, “Our target is to reduce the intake of reconditioned cars as far as possible….we should not import pretty old cars.”
He said the government is trying to make sure that the new cars should never be cheaper than the old cars and there should be a policy.
The Finance Minister, however, said despite the dissimilarities, the duty structure on vehicles would remain the same in the next fiscal, but efforts would continue to rationalise the duties.
On turnover tax, the FBCCI leaders demanded the Finance Minister reconsider increasing the VAT exemption ceiling on turnover of over Tk 7 lakh.
Meanwhile, the Finance Minister said regarding the administrative problems, discussions would be held after the budget formalities.
National Board of Revenue (NBR) chairman Dr. Nasiruddin Ahmed, FBCCI first vice president M Jasim Uddin, vice president Mostafa Azad Chowdhury Babu, BTMA president Jahangir Alamin, Bangladesh Dokan Malik Samity president Amir Hossain and other leaders of FBCCI, BGMEA, BKMEA and BTMA attended the meeting.
They came up with the demands when leaders of the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI), Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA), Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Textiles Mills Association (BTMA) met Finance Minister AMA Muhith at his office on Thursday.
FBCCI president AK Azad along with the leaders of other associations urged the Finance Minister to reinstate the existing rates of income tax at source of 0.60 percent and 0.70 percent (deemed export) from the proposed 1.2 percent considering the crisis in the Eurozone and high bank interest rates.
The FBCCI president urged the Finance Minister to determine the duty on import of capital machinery and other accessories at 1 percent from the existing 1 percent and 3 percent as well as to impose zero tariff on import of capital machinery for the 100 percent export-oriented industries.
Mentioning that the recent unrest in Ashulia industrial belt, BGMEA president M Shafiul Islam Mohiuddin said the confidence of the consumers has fallen in the last 10 days and there will be a stress on exports.
Due to the fall in global demands, he said, they had to compromise in their export prices alongside lagging behind in lead time. Besides, the power and energy tariff hike in a couple of phases coupled with high bank interest rates have pushed up the production cost by 12 percent, he alleged.
Echoing the demand of the BGMEA president, BKMEA president AKM Selim Osman urged the Finance Minister to keep the existing rate of income tax at source from the proposed 1.2 percent.
In response, the Finance Minister said the garment sector is the strength of the country as it had proved that it could reach the height. “There’re some problems and we’ll try to be helpful.”
The Finance Minister also agreed to withdraw new VAT on production stage of essential aluminum crockery items and VAT on its aluminum ingot and scrap.
About reconditioned cars, Muhith said the reconditioned cars have turned into a nuisance adding, “Our target is to reduce the intake of reconditioned cars as far as possible….we should not import pretty old cars.”
He said the government is trying to make sure that the new cars should never be cheaper than the old cars and there should be a policy.
The Finance Minister, however, said despite the dissimilarities, the duty structure on vehicles would remain the same in the next fiscal, but efforts would continue to rationalise the duties.
On turnover tax, the FBCCI leaders demanded the Finance Minister reconsider increasing the VAT exemption ceiling on turnover of over Tk 7 lakh.
Meanwhile, the Finance Minister said regarding the administrative problems, discussions would be held after the budget formalities.
National Board of Revenue (NBR) chairman Dr. Nasiruddin Ahmed, FBCCI first vice president M Jasim Uddin, vice president Mostafa Azad Chowdhury Babu, BTMA president Jahangir Alamin, Bangladesh Dokan Malik Samity president Amir Hossain and other leaders of FBCCI, BGMEA, BKMEA and BTMA attended the meeting.
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