Plastic goods manufacturers urged the government to retain 1% import duty on capital machinery and their parts to help flourish the sector as the production cost has increased.
Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) made the demand in its budget proposal for the financial year 2016-17 submitted to the National Board of Revenue (NBR).
Currently, the plastic manufactures have to pay 1% duty on import of capital machinery along with other duties.
BPGMEA also urged the government to set tax at source for plastic manufacturers at 0.30% instead of existing 0.60%.
It also demanded withdrawal of advance income tax for the sake of industry and attracting investment.
Plastic industry is a growing sector which does not enjoy any incentives, BPGMEA said, adding that the sector is facing tough competition due to price hike.
“That is why, we are urging the government to keep the duty unchanged to help boost the sector.”
In the budget proposal, the manufactures platform proposed the government to set 3% duty on raw materials, which are not produced in the country, 5% duty on intermediary raw materials produced domestically and 25% tax on finished goods.
The manufacturers also demanded 100% supplementary duty on finished plastic goods like hanger, furniture, door, etc as local manufacturers are now producing international standard products.
At present, the country is producing plastic goods worth Tk18,000 crore annually and earning almost Tk2,000 crore as revenues, according to BPGMEA.
In July-February period of the current fiscal year, Bangladesh earned $59 million, which was 13.61% less compared to $68.17 million a year ago.
During 2014-15 fiscal year, the country exported plastic goods worth $100.57 million.
