Traders demand withdrawal of additional duty on elevator, escalator imports
The Bangladesh Elevator, Escalators & Lift Importers Association (BEELIA) has asked the government to withdraw the additional duty proposed in the budget for FY 2023-24 and bring it under the list of capital machinery to help the industry cope with the current economic crisis.
The association also urged the government to maintain the previous duty rate of 11% – 1% import duty + 5% advance income tax + 5% advance tax – on the import of elevators and moving stairs or escalators.
"It has turned out to be another blow to the already exhausted importers who are forced to open letters of credit [LCs] for lifts on a 100% margin," it said in a press release issued on Wednesday (14 June).
Keep updated, follow The Business Standard's Google news channel
As part of efforts to protect domestic industries, generate employment, and reduce import bills, the government has proposed to raise the duty on imported elevators and escalators from 5% to 15%.
The duty has been proposed to be in force until 30 June 2025 to promote local manufacturing.
Additionally, imported lifts and escalators have once again been kept out of the category of essential capital machinery, which enjoys a mere 1% import duty.
The BEELIA noted that the proposed budget for FY 2023-2024 will increase the import duty of fully manufactured lifts by 10% resulting in a price difference of 37% between fully manufactured imported lifts and domestically produced lifts.
"Till 2025, the government has announced a VAT exemption for lift manufacturers who already enjoy a 1% duty on import parts and raw materials. As a result, manufacturers can sell lifts at a 25% lower price than importers by benefiting from the additional facilities they get on freight charge, import tax and VAT against supply," it stated.
The association expressed their determination to work with the government in finding an alternative to import dependency and develop a local industry.
Taking into account the important role played by elevator and escalator suppliers, they demanded the withdrawal of the proposed duty hike for importers while instituting safety and standard policies and forming regulatory bodies to build a sustainable local industry.
