Withdraw import duty on spare parts |
Carton, accessories manufacturers ask govt in budget proposal
Star Business Report
Corrugated carton and accessories manufacturers have demanded withdrawal of import duty on spare parts and cancel the bank guarantee provision for raw materials import.
The 100 percent export oriented units of this sector should be allowed to import spare parts at zero duty, Bangladesh Corrugated Carton & Accessories Manufac-turers & Exporters Association (BCCAMEA) said in its budget proposal.
The BCCAMEA members manufacture paper cartons and various types of garment accessories such as hanger, button and clip, which are used for exportable items of readymade garment industry.
Submitting a 12-point proposal for the next financial year's budget, the association said the hanger manufacturing units should be exempted from the provision of showing 25 percent bank guarantee for imported raw materials.
"This provision increases the cost of production," said BCCAMEA President Shafiullah Chowdhury who led a delegation to meet the National Board of Revenue chairman in Dhaka recently to place the proposals.
The association also urged the government to provide running capital and cash assistance from the central bank's Equity and Entrepreneurship Fund to the export-oriented carton and accessories industries.
The carton and accessories manufacturers have to pay 7.5 percent to 12.5 percent duty spare parts import, said Nurul Amin, secretary of BCCAMEA.
"We also requested the government to exempt us from paying Vat (value added tax) on utility services and insurance premium," he said.
Amin said they have proposed a three-year validity for bond licence and introducing two-year bonding tenure for raw materials imported under bonds.