Kibria calls for businessmen's consensus on tariff structure

Finance Minister SAMS Kibria yesterday asked the businessmen to come to a consensus on the would-be tariff structure and send it to the National Board of Revenue (NBR) for consideration.

Kibria said this while meeting with a delegation of the Dhaka Chamber of Commerce and Industries (DCCI) at his office yesterday. They asked him to adopt the chamber's tariff proposal.

The DCCI delegation told the finance minister that the existing tariff system is the main reason for the sickness of the country's industries.The DCCI urged the minister to restructure duties in a way so that the difference between finished products and raw materials can be at least 30 per cent.

But the minister said since there is a difference of opinion among the business community about the tariff structure, it should come to a consensus first and then place it before the government.

Kibria also assured the DCCI delegation headed by its president Aftabul Islam that the government would form a committee for rehabilitation of the sick industries having Tk one crore investment.

Kibria also informed them that the government had already taken initiatives for restructuring the two development financial institutions (DFIs) - Bangladesh Shilpa Bank and Bangladesh Shilpa Rin Sangstha -- to fund for rapid industrialisation. According to the restructuring plan, a chamber representative will be included in the respective boards of the DFIs.

The DCCi delegation submitted a set of proposals to Kibria for the revival of the ailing share market. The DCCI proposed some measures including removal of double taxation on the profits and bonus shares of the listed companies.

It also proposed a dual market system for the bourses so that better shares are traded differently from bad scrips.

The DCCI also calld upon the minister for withdrawal of income tax and VAT on indenting commission.

It proposed a system under which it would be made mandatory for indenting firms to buy government bonds equivalent to 25 per cent of their commissions and these bond could not be cashed within a year.

The DCCI proposals also include a mandatory measure for indenting firms to deposit 10 per cent of their commissions in bank accounts for at least a year and this could only used in case of treatment, education and foreign business trips.

Kibria told the DCCI members that he would consult the NBR on these proposals.

He also told the DCCI team that the government had taken initiatives to make changes in the Bank Company Act to relax the provisions regarding defaulting companies' access to fresh loans. As per the proposed changes, only the defaulting unit of any industrial group will be declared defaulter and other sister concerns will not be treated as defaulter.

The law ministry is preparing a bill in this regard and this will be placed in the parliament very soon.