The food and beverage producers proposed reducing duty and grant tax waivers in the upcoming national budget.
Proposals were placed at a pre-budget meet with National Board of Revenue (NBR) at its office in Dhaka yesterday.
The confectionary makers urged the revenue body to raise value added tax (Vat) free ceiling to Tk150 in a purchase.
In the current budget, the ceiling has been set at Tk100 for the confectionary makers which include biscuit, cake and bread etc. producers.
“We suffered big losses during political turmoil while prices of raw materials have also soared. In these circumstances, we seek raising of Vat-free limit to recover the business,” said Hannan Mia, general secretary of Bangladesh Bread, Biscuit and Confectionary Manufacturers Association.
The sweetmeat manufacturers asked for reducing Vat on sweetmeat to 6% from 15%.
“There are many sweetmeat outlets in the small towns and rural areas. They sell to low-income group people and have to pay 15% Vat,” said Aminur Rahman, general secretary of Bangladesh Sweets Manufacturers Association.
He said they had long been demanding reduction of Vat but received no response from the government, and had to pay Vat twice.
Aminur Rahman said they were paying Vat both from outlets and factories but the law required them to pay only from outlets.
In this regard, he mentioned Section 6 of the Value Added Tax Act 1991 and urged the NBR to collect Vat from outlets only as “it’s creating complicacies” for them.
Bangladesh Sugar Refiners Association also presented their proposals and urged the NBR to consider duty-waiver for the sector.
NBR Chairman Ghulam Hossain presided over the meet.