Want the latest locally-manufactured fridges and ACs? It’ll cost you more now
These industries have been enjoying tax incentives for years and reached a self-sustaining level
The government has decided to impose 7.5% VAT on locally-manufactured fridge and AC as tax exemptions for local manufacturing sectors were revised.
These industries have been enjoying tax incentives for years and reached a self-sustaining level.
The move to raise revenues and help industries become efficient has stoked fears, with entrepreneurs worried about its impact.
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Former NBR member Md Lutfor Rahman said, "I would welcome the decision to withdraw the benefits. An impact analysis should be conducted on the companies that have received benefits assessing how much of this benefit has been passed on to the consumer and how much has been pocketed by the company."
Dr Ahsan H Mansur, executive director of the Policy Research Institute, said, "Tax exemption benefits cannot be sustained indefinitely. It would be a prudent decision to withdraw these benefits, which would also enhance revenue collection."
He said, "It is not just VAT, even in terms of taxes, the benefits should not be increased. Additionally, the tariff protection provided for imports should be curtailed."
"It is not only about VAT; the tax benefits for sectors reaching their end this year should not be extended either and import tariff protection should also be reduced," he added.
