National Board of Revenue Chairman Ghulam Hussain came down heavily on “substandard” solar panel installers as they sought budget support in the next fiscal year.
He alleged that the solar power companies were not providing quality products, making the users suffer a lot.
The criticisms came when the solar firms asked for an allocation of Tk2,500 crore in the FY2014-15 budget’s annual development programme (ADP).
At a pre-budget with the NBR, they sought the support from the “Climate Changes Mitigation Fund” and said the amount is reasonable considering the allocation given to power sector.
Bangladesh Solar and Renewable Energy Association (BSREA) also demanded withdrawal of import duty, value added tax (Vat) and other taxes imposed on the solar system equipment, accessories and components used in fiberglass bio gas digester tank factory.
Currently, the sector needs to pay customs duty, supplementary duty, Vat, advance income tax, regulatory duty and advance trade Vat on import of equipment and accessories.
The association proposed to keep only 5% AIT and remove all other taxes.
It also proposed to raise a revolving fund of Tk1,200 crore by Bangladesh Bank as Green Fund with a single digit interest and a repayment tenure of 12-15 years.
BSREA said the irrigation by solar systems can save up to $100m as paid in subsidies for diesel and provide an option for 3.5m CREs per annum worth over $50m.
In response to its demands, the revenue body chief blasted the solar panel providers for their “substandard service.”
He termed the service as “tormenting” to the users, citing his personal experiences.
“I installed a solar panel system in my village house. But it caused a huge sufferings to me.”
Golam Hossain said the government had given the solar companies ample facilities to make the renewable energy popular.
“You must ensure that you are providing quality products. But you supply Chinese low quality products in the name of high quality German or Japanese products.” “But we do not import any such products from Germany.”
NBR chief said he had started using solar power at his rural homestead to encourage the local people so that they also used environment-friendly energy.
“But the things went opposite. It put me in troubles. I needed to pay technicians repeatedly to repair and found that costs turned higher than the grid-line power.”
The meeting was held at the NBR headquarters in Dhaka.
BSREA president Dipal C Barua spoke at the meeting and informed that they had so far installed solar panel systems in 30 lakh households.
He urged the NBR to consider their budget proposals to help expand the sector.
Paper owners, publishers, advertisers place budget demands
The paper mill owners demanded reduction of import duty on related chemicals to 3% while the book publishers asked for income tax waiver on donations given to set up libraries.
Besides, Advertising Agencies Association urged to reduce tax at source on advertisements from 10% to 5%. Photographic association demanded making the business tax-free as they are “in dire straits.”
They made the demands at pre-budget meets with National Board Revenue in Dhaka yesterday. NBR chief chaired the meetings.
“We want cutting import duty on paper chemicals to 3% and set a minimum Vat rate for the next five years to help expand the industry,” Mostafizur Rahman, president of Bangladesh Paper Mills Association.
He said the country has 72 mills in the country with a total capacity of producing 12 lakh tonne papers against a local demand of 8 lakh tonne.
The surplus products are exported to 30 different countries, Mostafizur Rahman said.
Bangladesh Gyan O Srijanshil Prokashon Samiti, a platform of book publishers, sought income tax waiver on donations made for libraries.
“We seek income tax waiver on donations made for libraries,” Osman Gani, president of the Samiti.
He also urged to cut duty on import of papers, alleging that the local paper producers “are charging as much as they wish.”
Bangladesh Patthopustok Mudron O Biponon Samiti, an association book printers and traders, also placed their budget proposals.
Its president Amirul Ali alleged the imported books were also enjoying tax free facility which was given to the local book printers.
“Some local writers are misusing the system. They publish books from aboard and then importing and show them as reference books,” Amirul Ali said.
In response to allegations, NBR chief Ghulam Hussain stressed the need of introducing a uniform system in the sector to prevent corruption.
Bangladesh Paper Importers Association said the involvement Bangladesh Standards Testing Unit (BSTI) in the release of products will led to harassment of importers.
Its president Alamgir Haque requested the NBR to refrain BSTI from the process.
Advertising Agencies Association of Bangladesh urged for reduction of tax at source on advertisements from 10% to 5%. Its president Ramendu Majumdar placed the proposal.
Photographic Association demanded removal of all duties from the photography business their business is longer a profitable one as there are small studios set up across the country.