NBR PRE-BUDGET MEETING: Zero duty sought on fire safety equipment for all sectors [ Tritiyo Matra News ]

NBR PRE-BUDGET MEETING: Zero duty sought on fire safety equipment for all sectors

Local April 20, 2016

Leaders of associations of apparel industries and accessory makers on Tuesday sought full import duty waiver on firefighting equipment for all types of factories including the export-oriented ones in the next budget to help ensure the safety of workers and assets.
At a pre-budget discussion with the National Board of Revenue, they also demanded reducing the tax at source on exports to 0.30 per cent from the existing 0.60 per cent for the readymade garment sector and consider the tax as final settlement.
Representatives from Bangladesh Garment Manufacturers and Exporters Association, Bangladesh Knitwear Manufacturers and Exporters Association, Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association, Bangladesh Plastic Goods Manufacturers and Exporters Association, and other relevant associations attended the meeting at the NBR headquarters presided over by revenue board chairman Md Nojibur Rahman.
BGMEA president Siddiqur Rahman said the tax authority should withdraw the existing 5 per cent import duty on fire safety equipment for the export-oriented apparel sector which will help the sector ensure compliance required by foreign buyers.
The benefit will also facilitate export and safety of workers’ lives, he said.
He also said there should be no import duty on the items for any sector, as factories are at risk of fire due to various reasons, including earthquakes.
According to the NBR, traders from other sectors have to pay a very high duty ranging from 31.07 per cent to 129.58 per cent for importing the equipment.
Regarding reduction of export source tax, Siddiqur said the revenue board should consider providing the facility at least for the next three years.
Both the BGMEA and the BKMEA also demanded for reviving the facility of special tax calculation at the reduced rate of 10 per cent for RMG exporters for the next five years, which the NBR withdrew in June 2014, introducing normal tax calculation at 35 per cent for the sector.
The other demands from the apparel manufacturers included withdrawal of VAT on purchase made through local letters of credit, exemption from submitting VAT returns, and an increase of time for audit document submission from the existing three to six months period.
BKMEA former vice-president Mohammad Hatem said the NBR should set the RMG exporters free from the obligation of filing VAT returns, as they enjoy exemption from paying VAT.
In response, NBR member (VAT policy) Jahangir Hossain said private limited companies would be excluded from deducting VAT from July next after implementation of the new VAT law.
BGAPMEA former president Rafez Alam Chowdhury urged the NBR to authorise the association to provide utilisation permission to its members for import of duty-free raw materials.
Bangladesh Textile Mills Association secretary general Feroz Ahmed sought withdrawal of the minimum tax, which is now 0.50 per cent of the annual turnover, for the primary textile sector.
He also asked the NBR to exempt the sector from paying 1 per cent duty on capital machinery import.
Among others, Bangladesh Terry Towel Exporters Association and Bangladesh Jute Goods Exporters Association also demanded reduction of the source tax on export to 0.30 per cent for their sectors.
At the meeting, the Federation of Bangladesh Chambers of Commerce and Industry president Abdul Matlub Ahmad said the revenue collection process should be free from harassment and the revenue board should address the allegations of harassment.
NBR chairman Nojibur said the tax authority would visit the associations to see the compliance of businesses related to income tax, VAT and customs duty.
Taxmen will address the problems being faced by the businesses instantly at the offices of the associations, he said.
Nojibur also urged the businesses to abstain from misusing duty-free import facility given under the bond licence.
Bangladesh Textile Dying and Printing Association senior vice-president Abdullah Al Mamoon, Bangladesh Garment Buying House Association president K I Hossain, and leaders of Bangladesh Textile and Garment Waste Processors and Exporters Association and Bangladesh Jute Mills Association, among others, also spoke in the meeting.