Tax benefits for manufacturers to go up in budget: NBR

Staff Correspondent | Published at 12:00am on April 18, 2019

Manufacturers of mobile handset, refrigerator and other electrical and electronic products will get higher tax benefits compared with assemblers of the products in the budget for 2019-2020 fiscal year, National Board of Revenue chairman Md Mosharraf Hossain Bhuiyan said on Wednesday.
At a pre-budget discussion with manufacturing sector leaders held at NBR conference room, he said that NBR would keep a difference in duty benefits and incentives between manufacturers and assemblers to encourage the latter to enter into manufacturing.
He made the comment following demand of manufacturers from various sectors including mobile sets, refrigerator and other products to keep a margin to encourage manufacturing in the country.
NBR became aware that many large brands, as assemblers, were obtaining tax benefits equal to manufacturers, Mosharraf said, adding that manufacturers should get benefits at higher rate than others.
NBR will also provide tax benefits equal to readymade garment sectors to all other export-oriented industries to promote export diversification, he said.
Exporters should increase the quality of products to tap the export potential, he added.
Bangladesh Mobile Manufacturers Association president, also chairman of Fair Group, Ruhul Alam Al Mahbub said that NBR should recognise those who would be able to manufacture motherboard as mobile phone manufacturers.
According to current NBR policy, an entrepreneur requires to manufacture battery, charger, housing and casing to be recognised as mobile manufacturers, he said, adding that production of these products should be treated as backward linkage industries.
Bangladesh Refrigerator Manufacturers Association adviser Soeb Ahmed demanded clear definition of manufacturers and assemblers and significant difference in tax benefits between the two groups.
The association alleged that many importers brought complete products in semi-knock down forms and sell in local market.
Bangladesh Electrical Merchandised Manufacturers Association demanded duty-free raw materials import facility for LED light industry for five years.
Bangladesh Electrical, Electronics and Home Appliance Manufacturers and Exporters Association sought separate policy for manufacturers, particularly for energy efficient electrical products, claiming that assemblers were now getting more benefits than manufacturers.
Computer and Mobile Manufacturers and Exporters Association demanded increasing minimum import value for feature phone claiming that the country was now self- sufficient in production of feature phone.
NBR member (customs policy) Firoz Shah Alam also spoke at the meeting.