FBCCI seeks specific duties on edible oil, baby food, raw materials
Hands over budget proposals to govt
Star Business Report
The country's apex trade body yesterday requested the government to impose specific duties on edible oil, powdered milk, baby foods, basic metal and raw materials in the next budget to keep prices of the essential products and industrial raw materials stable.The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) also recommended specific duties on other essential products on which ad valorem (in proportion to the value of something) duty have been imposed. The FBCCI placed the set of proposals at a consultative meeting in the run-up to the next budget, jointly organised by the National Board of Revenue (NBR) and FBCCI in Dhaka. The FBCCI made the proposals after compiling all the suggestions the apex trade body received from chambers and associations across the country. Among others, Finance and Planning Adviser Mirza Azizul Islam, NBR Chairman Badiur Rahman, and FBCCI President Mir Nasir Hossain attended the meeting. In the proposals, the apex trade body suggested restructuring of the existing duty structure from four-tier to three- tier--5 percent, 10 percent and 25 percent. The federation said the duty restructure should be changed in the light of the global and regional trade agreements. The FBCCI also demanded that the lowest individual income tax slab be fixed at Tk 1.8 lakh and proposed minimum income tax of Tk 1,500 per year. The apex trade body proposed 10 percent income tax for annual incomes between Tk 1.8 lakh and Tk 4.8 lakh, 15 percent between Tk 4.8 lakh and Tk 7.8 lakh and 20 percent between Tk 7.8 lakh and above. The FBCCI also suggested formulation of a price database on the basis of transaction value by establishing a non-profiteering organisation. The federation said as the pre-shipment inspections have failed to serve ultimate benefit of inspection, a price database will help end the existing valuation and classification problems. The FBCCI proposed an end to the discretionary power of the income tax officials and urged to implement the Value Added Tax (VAT) order, which was announced in February 2005. The federation proposed reduction in duties on all types of CNG- run vehicles from the existing 25 percent to 12 percent. The chamber also proposed reduction in customs duty on equipment of games and sports to 5 percent from the existing 12 percent. The FBCCI suggested special assistance and support for companies, which are involved in establishing recycling and effluent treatment plants. The chamber also proposed duty cut on newsprint and whiteprint paper. It also proposed complete withdrawal of import and other duties on imported books and children's picture books.
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