Highlights of budget demands

Several trade associations have placed different proposals to the Ministry of Finance with regard to the budget for the 2004-05 materials fiscal year suggesting reduction of tariffs and duties of raw and value added tax in order to make them more competitive. Some of the association have also suggested an increase of tariffs on products they believe to be competing with their industry directly. A few of the more prominent ones have been briefly outlined below.

 
:: The Bangladesh Knitwear Manufacturers
:: Real Estate Housing Association of Bangladesh
:: The shop owners association
:: The electrical association
:: Leather exporters' association
:: Jute goods association
:: Engineering association
:: Plastic goods manufacturers
:: Optical industries association
:: Shipping association
:: Bangladesh Association of Reconditioned Vehicles
:: Importers and Distributors Association
:: Refrigeration and air-conditioning association
:: Transformer manufacturers association
:: TV assemblers' association
:: Ceramic ware manufacturers' association
:: Bangladesh Chamber of Industries
 

The Bangladesh Knitwear Manufacturers' and Exporters Association proposed a continuation of cash assistance_ for knitwear manufacturers and exporters, review of incentive policy for the sector and duty-free imports of spare parts of industrial machinery in order to reduce production cost.

Real Estate Housing Association of Bangladesh proposed a reduction in registration fees for apartments to five per cent. They also suggested that the housing,loan be made available at a singledigit interest rate with a temporary waiver of import duties on raw materials such as iron and IVIS rod to help the developers lower their construction costs.

The shop owners association advocated for a continuation of the existing participatory system of VAT payment and called for a campaign to raise awareness among retailers and consumers to generate more revenue from retail sales.

The electrical association recommended a reduction on import duty on various raw materials up to 15 per cent to make the locally produced electronic goods more competitive. They also suggested a restriction on import of electronic products without letter of credit under baggage rule provision.
Leasing companies proposed a reduction in corporate tax cut and 'real incentives' for the listed financial institutions; and also relaxation of tax rules regarding depreciation in syndicated loans.

Leather exporters' association wanted a continuation of export of crust leather and cash incentives to help the industry sustain in the global market.

Jute goods association wanted an imposition of 200 per cent supplementary duty on import of synthetic carpets and floor covering.

Engineering association proposed for an expansion of non-taxable limit of investment in small engineering sector and freeing small business from value added tax.

Plastic goods manufacturers and exporters association proposed an increase of 30 per cent import duty on finished products.

Optical industries association asked for a waiver of import duty on raw materials and value added tax on locally produced optical frames and sunglasses. They also asked for budgetary measures to check illegal import of optical frames.

Shipping association suggested the withdrawal of value added tax on export related services of the seaports. Amendment to Customs Act 1969 to fix a time period for imposing penalty on shipping agents if there is any short landing of cargo.

Bangladesh Association of Reconditioned Vehicles Importers and Distributors Association, asked for a revision of customs valuation system of determining customs assessable value of newly imported and reconditioned cars and vehicles. They advocated the reintroduction of 'yellow book value' system for assessing customs value of reconditioned and used vehicles.

Refrigeration and air-conditioning association asked for the withdrawal of regulatory duty on imported parts to help the local assembling industry survive.

Transformer manufacturers association suggested a reduction of import duty on raw materials to develop the country's transformer manufacturing units.

TV assemblers' association wanted a withdrawal of regulatory duty on TV parts to help, them survive the stiff competition with imported finished TV sets.

Ceramic ware manufacturers' association suggested maximum levy supplementary duty on imports of finished ceramic products to put a check on 'possible dumping' in the local market. Private health service providers proposed a withdrawal of VAT and import duty on medical instruments and hospital equipment to make local health services cheaper and prevent an exodus of patients abroad and thereby save foreign currency.

Bangladesh Chamber of Industries suggested to formulate a policy to revise tariff rates for utility services like electricity, gas and water, and petroleum products every five years, instead of going for abrupt changes.Securities and Exchange Commission wanted a reduction in corporate tax rate for the listed companies to 27.5 per cent from the current level of 30 per cent. They also suggested to maintain some difference in terms of corporate tax between the non-listed companies and the listed companies which fail to pay at least 10 per cent dividends to the shareholders.Poultry industries association wanted an exemption of the poultry sector from all duties and value added tax (VAT) imposed on import of inputs.Ship breakers association proposed a complete withdrawal of the remaining 7.5 per cent import duty on scrap vessels to make iron-made construction materials cheaper in the local market.Agro-processors association wanted an exemption of VAT up to June 30 along with disbursement of cash incentives.