Manufacturers of electronics, mobile phones and computers demand reduction in customs duties and VAT

A file photo shows workers making an Internet of Things-based water management system at a factory in Kaliakoir Hi-Tech Park in Gazipur. Local manufacturers of electronics, mobile phones and computers and related upstream companies demanded on Sunday that the government reduce customs duty and value-added tax rates for the sectors to reduce their production costs in order to promote the economy in the post-graduation period. — New Age Photo

Local manufacturers of electronics, mobile phones and computers and related upstream companies demanded on Sunday that the government reduce customs duty and value-added tax rates for the sectors to reduce their production costs in order to promote the economy in the post-graduation period.

The internet and software services company demanded the extension of the duration of the existing tax exemption mechanism for the sectors until 2030 to stimulate the sectors to contribute to the achievement of the value-added target of the economy.

During a pre-budget discussion with the National Revenue Council, companies presented the demands for building the competitiveness of sectors to explore export baskets.

NBR Chairman Abu Hena Md Rahmatul Muneem chaired the pre-budget discussion.

He said the government has already offered several fiscal supports to the sectors and will extend the facilities with the aim of promoting the sectors to widen the export basket.

He also suggested that companies improve the quality of their products to meet both local market and export demand.

Leaders of local mobile phone manufacturers have demanded that tariff easing facilities on the import of mobile phone parts be maintained in the budget for the next fiscal year 2022-23.

They said the industry has already covered 80% of the country’s smartphone market.

Manufacturers of electrical products demanded the reduction of customs duties, additional duties and regulatory duties on the import of urea resins, thiourea resins which are the common elements to produce electrical switches, sockets, lamp sockets and the like.

They demanded a 5% duty on the existing 15% and also suggested the tax authority to increase the duty on the import of electrical switches, sockets, sockets and other goods, which is now by 15%.

Leaders of electric associations in Bangladesh have said that as an upstream linking industry, they want a reduction in VAT to 5% from the existing rate on automatic circuit breakers, LED tubes and bulbs, motors for fan and capacitors, aluminum crap, bearings and such.

They also urged the introduction of a separate HS code for pushbutton switches for industrial use.

Leaders of refrigeration and air conditioning merchants demanded to expand existing tax supports and demanded the reduction of 58.60% tariffs on the refrigerator and air conditioning lock ring.

They also demanded the update of several SROs which provide customs facilities for the import of products such as electrical control panel, color masterbatch, ultra clear glass and hot rolled steel and others. .

Local TV manufacturers demanded the reduction of customs duties from 25% to 10% on the import of LED TV equipment such as cabinets, circuit boards and tempered glass.

Manufacturers and exporters of electrical, electronic and household appliances in Bangladesh have been invited to include a number of household, kitchen and electrical appliance products in SRO No. 114 which was issued on May 14, 2021 to offer customs facilities for industry.

Local computer manufacturers and exporters are urged to update Section 47 of the VAT and Additional Duty Act 2012.

Leaders of the Bangladesh Software and Information Services Association demanded the extension of tax exemption facilities to 2030, which must expire in 2024 to meet the export target.

They said the software as a product has already surpassed the export target of Tk 1.3 billion.

They also demanded the inclusion of software, information technology and Internet services under the information technology enabled services policy.

They also called for the removal of VAT on local services and the exemption of duties on the import of cybersecurity equipment.

BASIS also urged allowing digital financial services to offer their customers 2% or 3% cash incentive facilities to promote cashless funds transaction facilities.

Internet service provider executives demanded reduction of tax and duty on import of equipment used as service like router, switch, OLT, ONU, fiber optic cable and others .

They also ask for exemption from VAT on services.

Comments are closed.