BPGMEA seeks tax reduction for plastic industry

Staff Correspondent | Published: 22:25, Jun 11,2018 | Updated: 22:49, Jun 11,2018

 
 

The Bangladesh Plastic Goods Manufacturers and Exporters Association on Monday urged the government to reconsider some of the changes in tax measures for the plastic industry in the budget for 2018-2019 fiscal.
The government reduced supplementary tax on import of many ready-made plastic products to 45 per cent to 50 per cent while keeping the tax rate on local packaging businesses of medicines industry same at 15 per cent which is against the tax policy, said BPGMEA president Md Jashim at a press conference at its office in Dhaka.
He also said that the decision to hike tax for imports of raw materials of filler and master batch of the plastic sector to 15 per cent from the current 5-10 per cent will hamper the progress of the sector. The organisation urged the government to reconsider the issue.
The association requested the government to withdraw the new 5 per cent supplementary tax imposed on all kinds of plastic bags and wrapping items as the fresh tax would increase the prices of these products and slow down the sector.
It also recommended reduction of source tax on exports at 0.50 per cent from the proposed 1.0 per cent.
The organisation also requested the government to impose 10 per cent single corporate tax rate on all export sectors.
It, however, welcomed the decision of reducing value-added tax on plastic and rubber made slippers and sandals, cutting tax in coded calcium carbonate, a key raw material in plastic industry, by 20 per cent.
It said that the move would reduce the prices of these products and thus benefit the low-earners.

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