Rafiq Ahmed, general manager of Lever Brothers Bangladesh Ltd, criticised the shift in government policy to a three-tier duty structure from the four-tier one saying that it would make raw materials for local industry costlier.

Import duty of some raw materials used for toiletries will stand at 50 to 54 percent while the duty on finished items will be only 25 percent in the new duty structure, he said speaking at the regular luncheon meeting of Foreign Investors' Chamber of Commerce and Industry (Ficci) at Dhaka Sheraton Hotel.

"If there is no consistency in the government policies, foreign investors will not be encouraged to invest here," Stephen Daintith, managing director of British American Tobacco Bangladesh, told the discussion chaired by Ficci President Mahbub Jamil.

Daintith, also vice-president of Ficci, said the proposed budget for FY 2004-05 is not favourable for boosting industrialisation in the country. He urged the government to concentrate more on industrial sector creating a favourable atmosphere.

While discussing the proposed budget at the meeting the Ficci members expressed pessimistic views on the budgetary proposals regarding trade and investment.

Anis A Khan, managing director of Industrial Development Leasing Company (IDLC) of Bangladesh Limited, pointed out that the government treats banks and financial institutions in different ways although they are engaged in similar kind of business.

"The banks enjoy two percent tax rebate facility in provisioning their bad debts but the financial institutions are not entitled to this facility," he said urging the government to stop this kind of policy discrimination.

Anwar Hossain, country manager of Sony Ericsson, said around 70 percent mobile phone sets are coming to the local market through illegal channels. "For this, the government is losing Tk 2.25 billion revenue earning annually," he claimed.

"The import duty of mobile handsets should be fixed at Tk 750 whose value is under $100 and Tk 1,000 whose value is more than $100," he said.

Khalid Hasan, director of (corporate affairs) of GrameenPhone, said there is no justification of showing TIN (tax identification number) to get ISD (International subscribers dialing) connectivity in mobile phone.