Finance minister AMA Muhith on Thursday proposed that a number of tax measures be taken on different items from the next fiscal year 2017-18 to boost up domestic industrial sector.
In his budget speech, Muhith said that in order to promote the growth of domestic heavy industry, VAT exemption facility was given earlier as an incentive to the local manufacturers of refrigerator and freezer since June 30, 2017 and the facility would continue till June 30, 2019.
The finance minister proposed that the existing VAT exemption facility be extended to the local manufacturers of air conditioner, palm oil, soya bean oil and local LPG cylinder manufacturers to June 2019 from June 2017.
Zero rates have been retained in the prime ingredients of agricultural sector like fertiliser, seeds, insecticides and highest rate of customs duty has been proposed to be continued on rice importation so that farmers get fair price for their production, he said.
To protect the interest of farmers, higher rate of duty has been imposed on importation of starch made from locally available crops like wheat, potato and maize; but the duty has been lowered in case of starch made from cassava and other crops that are not produced locally, Muhith said.
The importers of rice have now to count around 54 per cent customs duty and VAT.
With the huge expansion of leather sector, as per the foreign buyers’ demand, the business people need to set up safe factories, he said.
‘Due to this reason I propose reduced rate of duties as capital machineries on busbar trunking system and electrical panel imported by the industries of this sector,’ the finance minister said.
Battery industry is another promising sector and batteries were exported to many other countries, even after fulfilling the domestic need, he said.
High rate of duties has been imposed on the importation of finished batteries to facilitate the local industries.
Muhith proposed that 4 per cent custom duty be imposed on imported battery from the existing 3 per cent duty.
He also proposed that the custom duty on the importation of ceramic products be increased to 4 per cent from the existing 3 per cent as the industry was in the boom locally.
Besides, the rate of duties of some ceramic products-related raw materials like talc, mica, alumina liner will be decreased, according to the finance minister’s proposal.
Muhith also proposed that the duty rate on the importation of complete solar module and panel be increased from 5 per cent to 10 per cent as Bangladeshi manufacturers were now able to produce solar panels.
‘Bangladesh manufacturers make the solar panels using photovoltaic cell. This is the reason I propose zero rate on importation of photovoltaic cell’, he said.
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