The platform of the plastic manufacturers and exporters still demands 20% cash incentive as this sector is now facing stiff global competitation, especially in the US market following the suspension of the Generalised System of Preferences (GSP) facilities by the US adminstration since June 27, 2013.
Apart from withdrawal of the GSP facilities, the increased shipment cost has also put this sector in further crisis of global price competativeness, said Jasim Uddin, president of Bangladesh Plastic Good Manufacturers and Exporters Association (BPGMEA) yesterday while addressing a press conference at his city office.
The press conference was organised to express the platform’s reactions over the proposed budget for the next fiscal year. Expressing his sharp recation over the proposed budget, Jasim Uddin said: The government’s tendency to borrow money from the banks to meet the budget deficit will not only further increase bank’s interest rates but also hamper the overall private investment due to the fund shortage.
In the proposed budget, the government had shown a deficit of Tk61,364 crore and to meet the budget difict would be a big challenge for the government, said Jasim.
Terming the budget as investment and industry friendly, Jasim hailed the government for proposing an allocation of Tk10 crore for establishing Bangladesh Institute of Plastic Engineering and Technology (BIPET) to create skilled manpower for further developing the country’s plastic sector.
“We are going to start training programme at Bangladesh Institute of Plastic Engineering and Technology (BIPET) by August, this year, to enhance the skills of the manpower, working in the plastic sector,” said Jasim.
Urging the government to withdraw value added tax (VAT) on the locally produced toys, Jasim said reducing supplementary tax on the imported toys would surely cast a negative impact on the local toy makers, especially the small ones.
Expressing his satisfaction for giving special thrust on power and energy sector, the BPGMEA leader, however, said: We have to come out off the rental power plants and concentrate on the coal-based power plants.
The organisation demanded withdrawal of VAT on plastic recycling industry as it not only helps to reduce ecological impact but also generate jobs for the unskilled people.
He also demanded cash incentives for the plastic industry as like as RMG sector for exploring new markets for the plastic goods across the world. Currently, RMG sector enjoys 3% cash incentives for exploring new markets.