FBCCI: Uniform 1% duty on capital machinery, basic raw material import

Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Thursday has recommended to the National Board of Revenue (NBR) to set a uniform 1% duty on the import of capital machinery and basic raw materials in order to eliminate inconsistencies in the duty-related procedure. FBCCI has also urged the government to set 3% duty on intermediary goods and 10% uniform duty on intermediary raw materials and essentials goods. FBCCI president Abdul Matlub Ahmad made the call for the above at the 37th NBR-FBCCI National Consultative Committee meeting for consideration in the upcoming budget for fiscal year 2016-17. NBR and FBCCI have jointly organised the 37th meeting of the consultative committee at a hotel in Dhaka with Finance Minister AMA Muhith as the chief guest. Junior minister for Finance MA Mannan attended the meeting as the special guest and Abdul Matlub Ahmad presided over it. The FBCCI president also proposed bringing tariff rationalisation to the NBR to eliminate inconsistencies in the duty process for raw material import. He also recommended continuing the supplementary duty on imported finished goods. In his speech, Ahmad said it would be a challenge during the budget’s formulation and implementation to give special attention to electricity, energy, infrastructure, investment, increased employment, collection of increased amount of revenue from domestic sectors etc. He demanded special attention to encourage individual sectors in investments and special allocation for female entrepreneurs in the next budget. He also urged the government to bring attention to reducing the fuel price in a way that helps minimise the cost of doing business. Ahmad demanded formulation of a policy for electricity price fixation and boosting regional connectivity to improve electricity generation. He also demanded the withdrawal of advance income tax on the import of capital machinery, basic raw materials, and intermediary raw materials, as these are inconsistent with the basic principles of the Income Tax Act. The FBCCI president also sought income tax at a minimum rate of 10% from the existing 35% on export-oriented sectors, particularly for the ready-made garments industry, to help them to flourish. NBR chairman, also senior secretary of Internal Resources Division under the Finance Ministry, Md Nojibur Rahman will lead the open discussion programme on the proposals.