Vice-president of FBCCI, the apex business body of Bangladesh, and chairman of Minister Group MA Razzak Khan said the new budget would serve as a new milestone in the development of domestic brands, local industries and employment.
In response to the budget, he said the reduction in tariffs on imports of various raw materials for the local industry would lead to the development of various electronic industries, including household refrigerators, ACs, blenders, etc. At the same time, the business leader thinks that the quality will be better besides the prices of these products will also be reduced.
He said although the new budget is for domestic industry and business, it requires consistency of policy and long-term planning to be more effective. However, in the proposed budget, more importance has been given to education, health, social security, infrastructure, law and order, employment, etc. than in the previous financial year. But for the development of domestic industry, opportunities have increased for various industries including electronics and electrical products manufacturing industry, pharmaceutical industry, agricultural machinery manufacturing companies, light engineering, computer manufacturing companies, toy manufacturing, poultry feed manufacturing companies, sanitary napkin and other manufacturing companies.
He thinks this will also increase the pace of GDP growth in the country.
The industrialist said it is learned that in this year’s budget, Tax Holiday will be facilitated in 19 sectors of the industry. Among them, advance tax (AIT) on import of industrial raw materials has been reduced by one percent to 3 percent. In addition, the existing VAT exemption facility for one more year the production of LPG cylinders, freezers, refrigerators, and their compressors has been extended for another year. Furthermore, the existing facilities for the production of air conditioners and its compressors, motor cars, and motor vehicles have also been maintained the same. Moreover, VAT exemption has been given at the local production level for daily use products for domestic use, especially blenders, juicers, mixers, grinders, electronic kettles, rice cookers, multi-cooker, pressure cookers. The same facilities have been provided at the local production stage of washing machines, microwave ovens, electronic ovens. It can be seen that in many countries of the world including India, the corporate tax rate is low and the tax structure is simple. The corporate tax rate in India is of two types. 30 percent for large companies and 26 percent for local companies. In Sri Lanka and Pakistan, the corporate tax rates are 28 and 30 percent, respectively. The only corporate tax rate in Singapore is 13 percent. Considering this, many are thinking that the government is giving facilities to the businessmen in this year’s budget.
Considering electronic industry as emerging industry of the country, products including refrigerators, televisions, and air conditioners are being given exemption facility of value-added tax or VAT. So, the producers will not have to pay 15 percent VAT on the products produced in these sectors. The budget also proposes a 10 percent tax holiday for those who will set up these factories locally.
Thanking Prime Minister Sheikh Hasina and Finance Minister AHM Mustafa Kamal for bringing such industry friendly budget, the FBCCI vice-president said the domestic industry would make a big contribution to the economy. Because if the domestic industry turns around, massive economic activities will be created — employment will increase – new entrepreneurs will be created. He further said that besides eliminating the complexity of VAT and tax on imported raw materials, local TV manufacturers have not been able to survive in the competitive market as LED TV manufacturers have been paying 10 percent supplementary duty at the import stage. As a result, on the one hand, such valuable foreign currency is going out of the country, on the other hand, domestic industrial development and employment are being hampered in the same way. For this, the supplementary duty needs to be increased from 10 percent to 25 percent and from $13 to $23 per kg.
As the budget of the Corona period is industry-friendly, those involved in the domestic industrial sector will get huge benefits and the market will also expand. But these industries need to be taken to the world market, not just inside the country. The FBCCI vice-president also urged for policy assistance in the export of Bangladeshi goods. In this case, he proposed to increase the amount of cash assistance in the export of goods.
