Increase tariff on toy imports to protect local manufacturers: BPGMEA
In a post-budget press conference on Monday, the plastics goods manufacturers association placed a 15-point charter of demand
Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) has reiterated its call upon the government to increase tariff on imports of readymade toys to protect local manufacturers.
The trade body has also asked for reconsidering its pre-budget proposal to exempt the toy makers from taxes on 28 items essential for manufacturing toys, instead of 13 items as proposed in the budget for the forthcoming 2021-2022 fiscal year.
In a post-budget press conference held at its office in the capital on Monday, the BPGMEA put forward a 15-point charter of demands that also include VAT waiver on plastic crockeries items.
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Speaking at the press conference, BPGEA Shamim Ahmed said the toy manufacturing industry has become a promising sector in the country.
"Toys currently being manufactured in the country are good in quality and have become a substitute to imported ones. Therefore, we urge the government to reconsider our proposal to increase tariff readymade toy imports."
"In addition, we had demanded tax exemption on 28 items essential for making toys, but the government has announced this facility only on 13 items. We also ask for a reconsideration of our proposal in this respect," he said.
He went on to say many businesses in the plastic goods manufacturing sector have shuttered and thousands of employees have become unemployed amid the ongoing pandemic.
He further added that many businesses are in a vulnerable state and are not being able to repay bank loans.
Against such a backdrop, the BPGMEA president urged the government to come forward to save this industry by providing incentives and other necessary support.
"We demand an exemption from the 3% advance tax imposed on the plastics industry in the proposed budget for FY22", he said.
The other demands made by the organisation include offering a tax holiday facility to the industry, and keeping source tax at 0.25% and corporate tax at 10% for all export sectors.
Plastics manufacturers also demanded that the existing 10% tariff on Filler MasterBatch and Color MasterBatch be reduced to 5% and the current 5% tariff on AluAlu Bottom Foil and Aluminum Blister Foil be brought down to 1%.
The BPGMEA president also demanded the government to fix the upper limit of turnover at Tk5 crore, instead of present Tk1.5 crore, and bring down the tax rate from 4% to 3%.
He also called upon the government to ensure greater efficiency and accountability in implementing the budget in the national interest.
