Light engineering entrepreneurs demanded exemption of import duty on basic raw materials in the coming fiscal year to help grow their industry further and accelerate industrialisation in the country.
Reducing the import duty on non-alloy steel flat bar is vital to save the industry from closing down as duty disparity between the imported flat bar and finished leaf spring and other dishonest practices put the industry in unhealthy competition, they said in their budget proposal.
“Nine units have already been closed and present condition of six more is very bad because of this unhealthy competition,” said President Abdur Razzak.
“So it is necessary to reduce duty to zero from non-alloy steel flat bar, a raw material of leaf spring, existing 5%,” he said.
If the demand is met, the engineering units can also use its full production capacity, thus to generate employment generation and increase revenue earnings of the government, he added.
The association also sought zero duty on imported equipments of building lift for creating opportunity for the local industry to produce lift locally.
“This will save huge foreign exchange,” said Razzak.
It also proposed to fix minimum import duty on filter paper, a basic raw material of engine filter from present 10% and increase duty on imported finished filter to make the industry competitive in the domestic market.
Demands included VAT free ceiling on business turnover from existing Tk60 lakh, reduction of VAT to 3% on light engineering sector from the existing 15%, exemption of VAT on import of raw materials for light engineering sector.
The BEIOA also proposed tax benefit on investment of plants, machinery and equipments of cottage industries to flourish the sector.
Around 4,000 SME members of the association are engaged in the production and marketing of light engineering products.