Corporate Tax

Two commerce organizations are aiming to decrease corporate tax charges

Manufacturers and exporters of plastic goods on Sunday called for the withdrawal of import duties, VAT and additional import duties on capital goods and spare parts for the sector.

They also called on the government to exempt the import of raw materials tax for plastic toy manufacturers and to tax imported finished toys as part of protecting local industries.

They also called for a reduction in the corporate tax rate for the export-oriented plastics industry from the current 35 percent to 12 percent.

Another association of the apparel accessories and packaging industry has also put forward a proposal to cut corporate tax from 32.50 percent in the upcoming budget for the 2021-2022 fiscal year to 12 percent.

The proposals were presented at a pre-budget meeting of the National Board of Revenue (NBR) with the Bangladesh Plastic Goods Manufacturers & Exporters Association (BPGMEA) and the Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association (BGAPMEA) at NBR headquarters in the city filed Segunbagicha.

Chaired by NBR Chairman Abu Hena Md Rahmatul Muneem, the program was addressed by BPGMEA President Md Jashim Uddin, his former President Shamim Ahmed, Advisor Manzur Ahmed, BGAPMEA President Md Abdul Kader Khan and his second Vice President Mozaharul Haque, among others, Shahid and NBR member (tax policy) Md Alamgir Hossain.

The NBR chairman said the tax bureau will consider proposals to ease local toy manufacturers as the government is always in favor of protecting labor-intensive domestic industries.

“There are policies in place across the country to encourage small and medium-sized enterprises to strengthen the rural economy.”

Regarding the fact that local apparel accessories manufacturers are competing with China to sell products worldwide, Muneem said, “The sector itself needs to work to increase competitiveness in the international market, as just having customs assistance makes an industry incapable can. “

He also assured the two associations that they would take initiatives to eliminate any legal inconsistencies in the implementation.

The BPGMEA President said that the country’s plastics industry does not enjoy facilities like BGMEA, BKMEA or BTMA even though they are direct exporters and add great value to the export-oriented RMG industry by supplying percentage accessories.

“We want a corporate tax rate of 12 percent, similar to the export-oriented RMG industry. Plastics manufacturers currently pay 35 percent corporate tax.”

Regarding the potential of the local toy industry, Jashim said, with appropriate support, that the local toy industry could export after domestic demand was met.

The government should exempt the import tax on raw materials for the toy industry from the tax, while the import tax on finished toys should be increased, he added.

Mr Shamim said there were allegations of massive under-billing when importing plastic toys.

However, BGAPMEA demanded the withdrawal of income tax on the purchase of raw materials from the domestic market by cash payment or back-to-back LC (letter of credit).

Looking for a cash incentive option, the BGAPMEA president said that many export-oriented small and medium-sized industries receive cash incentives to export, but the apparel accessories and packaging industries have been deterred, despite being an exporter and contributing to the RMG sector.

Mr. Khan also proposed lowering the withholding tax on direct and indirect exports of apparel accessories and packaging products from 0.50 percent to 0.25 percent.

ahb[email protected]

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