Forget govt support

The National Board of Revenue (NBR) has suggested local entrepreneurs focus on capacity building to become more competitive rather than seeking government support over the coming years.

"Bangladesh is going to graduate from a least-developed country within the next four years and so, there will be no scope for the government to provide support to protect local industries," said NBR Chairman Abu Hena Md Rahmatul Muneem.

He was addressing a pre-budget discussion with the leaders of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida) and the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) at the NBR conference room yesterday.

Muneem went on to say that Bangladesh will face numerous challenges in conducting trade and business after the country's graduation in 2026.

"For this reason, entrepreneurs will have to leave their support seeking mindset," he said.

However, the NBR chairman assured that the government would still consider any industry's demand for support based on the merit of proposals.

As such, the Barvida yesterday placed a demand before the NBR, asking for a new price depreciation scale for importing reconditioned cars as it would boost the market as well as government revenue.

The NBR provides 10 per cent depreciation facilities for a one-year-old reconditioned car, 20 per cent for two-year-old cars, 30 per cent for three-year-old cars, and 35 per cent for those aged four years and above.

The Barvida proposed to set the depreciation facility at 15 per cent for one-year-old cars, 25 per cent for two-year-old cars, 35 per cent for three-year-old cars, and 45 per cent for those aged four years and above.

The NBR considers the depreciation benefit as per the yellow book, or new price, of the car.

For example, the NBR currently slashes a vehicle's total price by 35 per cent if it underwent reconditioning four years before its import to Bangladesh.

"We also urge the NBR to further reduce the customs duty on microbuses which are considered as mass transport as it would reduce the movement of non-compliant vehicles and save human lives," said Abdul Haque, a former president of the Barvida.

Meanwhile, the BCMEA asked for the withdrawal of supplementary duties on tiles and sanitary ceramic products in order to protect the local industry.

Manufacturers currently pay 15 per cent supplementary duty on tiles and 10 per cent on sanitary items.

BCMEA President Md Shirajul Islam Mollah demanded the import duty imposed on China clay, the industry's main raw material, be reduced from the existing 30 per cent.

He further demanded the NBR impose an additional 10 to 12 per cent import duty on the import of finished ceramic products in order to protect the local industry and build its capacity.

Md Masud Sadiq, member (customs policy) of the NBR; Zakia Sultana, member (VAT policy); and Md Shamsuddin Ahmed, member (tax), also addressed the programme.