Business leaders yesterday raised concern over misuse of bonded warehouse facility hitting small traders hard, besides creating a huge revenue loss for the government.
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Abdul Matlub Ahmad said traders have become alert about the misuse of bond facilities.
He asked the NBR to provide the apex chamber with an entire list of merchants enjoying bonded warehouse facility so that they can work on the issue.
Abdul Matlub Ahmad also urged the revenue authorities to allow traders to import their products commercially and make a rational duty structure.
The FBCCI boss made the call at a pre-budget discussion of NBR held at its headquarters yesterday.
The government allows bonded warehouse facilities to the merchants to import and store duty-free raw materials for their export.
The misuse of bond facility is going on years after years and increasing significantly. Raw materials are sold in local market although they were supposed to be used for production and export.
The government incurs a loss of around Tk58,000 crore revenue annually for the misuse of facility by some unscrupulous businessmen, according to the NBR.
The FBCCI boss called for NBR not to put more burden on existing taxpayers, rather increase tax network by bringing those who evade tax.
“They want to pay tax, VAT and duty, but they want simplification of the process and minimising of harassment,” he said, adding that implementation of VAT Online Project and simplification of tax procedures can reduce link between taxpayers and tax collectors which will result in minimising harassment.
Matlub also demanded that NBR ensure level playing field between small and big business enterprises as big ones get many facilities while the micro and small ones do not.
“Big enterprises are beating small ones. They want to get rid of it,” he said.
Thailand, Korea, Malaysia, and even Singapore have grown with SMEs, he said, adding that time has come for Bangladesh to look for the small, medium and micro manufacturing industries.
Bangladesh Plastic Goods Manufacturers and Exporters Association former president Shameem Ahmed urged the revenue authorities to impose duty of plastic raw materials as per current transaction value instead of that in the last fiscal year.
He also called upon the NBR to put more surveillance on finished goods available in local market at much lower price than the international price due to under invoicing.
In response, NBR senior member Farid Uddin asked the association to help the revenue authorities with the list of such products, including their source country, estimated value. etc so that they can take action in this regard.
Bangladesh Bidi Shilpa Malik Samity demanded withdrawal of AIT from the product and fixation of a minimum price slab of cigarettes at Tk5 to minimise tax-related discrepancies.
The fake band rolls of cigarettes is available in the country, he said, demanding that the revenue authorities put more surveillance there to earn additional revenue.
Bangladesh Chasma Shilpa and Banik Samity president Manjurul Haque Sikder said misdeclaration of eyeglass is a regular incident as the association found Tk5 as the price of eyeglass in import documents.
Tk3 crore has been earned in first seven months of ongoing fiscal year against Tk24 crore in last fiscal year, he said, explaining the result behind the situation, and demanded that the NBR attend to the matter.
Syed Mojibur Rahman from Bangladesh Starch and Derivatives Manufacturers and Traders Association also alleged misdeclaration of import of the starch.
Bangladesh Ship Breakers Association demanded reduction of VAT at Tk200 from existing Tk800 in per metric tonne and import duty from Tk1,500 to Tk500 in each ton of imported ships.
Small and Medium Enterprises Owner’ Association of Bangladesh President Md Ali Zaman stressed raising more awareness among public about the new VAT law that will come into effect from July this year.
He also suggested mentioning maximum retail price of every product including VAT to help reduce complexities for implementation of the new act.
Bangladesh Ghary Baboshayee Samity vice-president M Kawsaruzzaman demanded that the clock industry be announced as small cottage industry to help it flourish further.
Bangladesh Rubber Garden Owners’ Association urged the revenue authorities to withdraw VAT on the sale of latex, a primary product of natural rubber. It has also urged the government to provide ITB with cash incentives during exports.
Dilip Kumar Agarwal, general secretary of Bangladesh Gems Stone Merchants Association, demanded tax holiday and policy support for both gold and diamond industry.
Real Estate and Housing Association of Bangladesh (REHAB) first vice-president Liakat Ali Bhuiyan demanded that the NBR provide continued scope for whitening undisclosed money without any question in housing sector.
Its other demands include reduction of gain tax from 15% to 4% and registration fee from 14% to 7%.
Assuring the traders, NBR Chairman Md Nojibur Rahman said the next budget will bring positive changes to business.