The proposed budget for the next financial year was a very strong move by the government to revive the country's limping economy, Bangladesh Plastic Goods Manufacturers & Exporters Association (BPGMEA) President Md Jashim Uddin said yesterday.
“BPGMEA thinks that the declared budget will achieve the overall economic goal of the country,” Jashim said in a media release.
“However, to ensure the implementation of this challenging budget, the government needs to take realistic steps, stopping unnecessary expenditure, resource wastage and misuse of funds.”
He thanked the Finance Minister AHM Mustafa Kamal for presenting the budget that promises to gear up the overall economy as well as protect human health affected by the pandemic.
He also thanked the government for raising the tax-free income threshold for individuals to Tk3 lakh and readjusting the minimum tax rate to 5% and setting the maximum tax slab at 25%.
The BPGMEA president requested the withdrawal of VAT on necessary plastic goods such as plastic dishes, jugs, mugs, bowls, glasses, vegetable net food lids, baskets, soap dishes etc.
He said the provision of the National Board of Revenue (NBR) that made Vat registration for all plastic products mandatory, irrespective of turnover, is in conflict with the VAT law.
“I request the government to cancel the provision for the sake of the industry,” he said.
The BPGMEA said the revenue target for next fiscal year of Tk3,30,000 crore from the NBR head was not achievable.
The revenue collection in the current 2019-2020 fiscal year could be around Tk 2,00,000 lakh crore, it predicted.
“Under the corona emergency, a revenue target of Tk3 lakh 30 thousand crore for FY2020-21 is not realistic at all,” Jashim said in the media release.
“Consumers, including the manufacturing sector, will have to bear additional indirect taxes for the high amount of estimated revenue collection,” he said.
He urged the government to minimize revenue related complexities in doing business and to renew efforts for automation in revenue administration.
Lastly, the BPGMEA president requested that the government include the plastic sector in its tax holiday scheme.
