Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 1047 Sun. May 13, 2007  
   
Business


Electronic goods manufacturers seek protection


Seeking protection to domestic products, electronic goods manufacturers have demanded removal of duty anomalies.

They said they are to pay duty and VAT 62 to 136 percent for import of raw materials of certain products, but the finished products are allowed to import barely at 4 to 30 percent duty and VAT. "This anomaly must be removed," said Engineer Guljar Rahman, general secretary of Bangladesh Electronics Innovative Manufacturers Association (BEIMA), at a press conference at Dhaka Reporters' Unity yesterday.

He named the products, for example, as Uninterrupted Power Supply (UPS), AVR or voltage stabilizer, voltage protector or guard, Instant Power Supply (IPS), solar battery charge controller and inverter, which they are manufacturing within the country and paying duty as high as 136 percent for import of raw materials.

Guljar noted with regret that these products are allowed to import at a very low duty harming the growth of domestic factories. The government should exclude these items from the category of 'computer accessories'.

He said these items are now imported at zero to 16.5 percent VAT on plea of computer accessories.

Guljar suggested 100 percent total tax incidents (TTI) for importing UPS and 80 percent for AVR or voltage stabilizer, voltage protector or guard, Instant Power Supply (IPS), solar battery charge controller and inverter. This would protect the domestic products, he said.

He further suggested 1.5 percent VAT on retail price of locally produced electronics and total exemption of VAT on import of raw materials.

They are manufacturing quality electronic items, Guljar claimed, adding that given due protection they can earn huge foreign exchange.

The association president, M Shafiqul Islam, and Dhaka University physics professor Dr K S Rabbani also spoke at the press conference.