They also proposed withdrawal of bank guarantee on the import of raw materials and value added tax (Vat) on recycled products.

Bangladesh Plastic Goods Manufacturers and Exporters' Association (BPGMEA) recently submitted the proposal to the government through the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).

In the proposal, the association mentioned that 'high' import duty on raw materials is pushing the prices of locally manufactured plastic goods up.

Besides, the local manufacturers are facing stiff competition with the cheap plastic goods imported from China and India, it said.

The association proposed reduction of import duty on raw materials to 7.5 percent from existing 15 percent and imposition of a 50 percent supplementary duty on imported plastic goods in addition to the existing 30 percent import duty.

The government should abolish the system of showing 25 percent bank guarantee, which is mandatory for raw material importers, in the next national budget, it said.

This bank guarantee increases the cost of production, the local manufacturers argued.

They also urged the government to withdraw the Vat on recycled plastic products to encourage the recycling process.

The association said these budgetary measures are needed to flourish the industry, which is growing rapidly and contributing to the national economy by earning foreign exchanges through direct and indirect exports.

At present, there are about 3,000 plastic industrial units in Bangladesh of which 30 are engaged in direct export, 300 in indirect export and the rest serve the domestic market of Tk 800 crore, industry sources said.

In the last year, exporters fetched Tk 100 crore from direct export and another Tk 500 crore from indirect export of plastic goods, the manufacturers said.