'Misuse of bond facility has become a serious threat to the local industries, as well as revenue mobilization''
The National Board of Revenue (NBR) Chairman Mosharraf Hossain Bhuiyan on Sunday warned that action would be taken against those who would misuse bond facilities.
“Misuse of bond facility has become a serious threat to the local industries, as well as revenue mobilization,” NBR chairman told a workshop.
He made the remark while speaking at a workshop of the Economic Reporters’ Forum (ERF).
The workshop was jointly organized by the International Finance Corporation (IFC) and the ERF at the ERF Auditorium at Purana Paltan, Dhaka.
Mosharraf Hossain Bhuiyan said that some export-oriented industries were misusing the bond facilities, illegally selling raw materials, imported under the duty-free facility, in the local market.
“Such malpractice is affecting local industries,” he mentioned.
The NBR chief urged journalists for their roles to protect domestic industry.
Dhaka and Chittagong bond commissionerates of the customs department had recently suspended bond licenses of around 45 exporters, and issued show cause notices to another 17 exporters for selling bonded goods in local market, he said at the programme.
The planned bond automation initiative was a part of its plan to stop the illegal practice that was causing the national exchequer with huge loss in duty and taxes, said the NBR chairman.
The Policy Research Institute (PRI), a local think-tank, chairman Zaidi Sattar said that the country should prioritize the overall export market and should provide bonded facility to non-RMG sectors.
There were 4,000 exporters from RMG sector while 3,500 exporters from non-RMG sectors who exported 1,390 products in FY17, he said.
IFC private sector specialist Nusrat Nahid Babi said that NBR should streamline policies and processes of bond licences for sectors with export potential like leather goods, light engineering, plastics and electronic goods.
The programe was presided over by ERF vice-president Syed Shahnewaz Karim.
ERF general secretary SM Rashidul Islam and Dhaka Customs Bond Commissionerate joint commissioner Moshiur Rahman delivered speech in the program.