General

Plastic goods manufacturers demand withdrawal of VAT

Local manufacturers of plastic products have placed a 4-point list of demands including withdrawal of value added tax (VAT) on their purchase of raw materials to facilitate their business in the country.

Addressing a press conference, leaders of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) said the local plastic goods producers collect the used plastics from local sources as raw materials to manufacture their finished products which are used by people from all strata in rural and urban areas.

“But the VAT waiver was withdrawn in the 2017-18 financial year from the plastics goods which are mainly used as crockeries items by the poor and low income people. So, we demand the withdrawal of VAT for next five years to reduce the product cost,” said Shamim Ahmed, president of the BPGMEA, at the press conference at the organisation’s office in the city on Monday.

He also sought withdrawal of 15 percent VAT from locally made plastic toys, provision for tax holidays, reducing the source tax to 0.25 percent and fixing corporate tax at 10 percent for all business sectors.

The BPGMEA also demanded raising the upper-limit of tax-free turnover to Tk 5 crore from the existing Tk 1.5 crore along with reducing the tax regime to 3 percent from existing 4 percent, and giving waiver to 3 percent advance income tax considering the Covid-19 situation.

Shamim Ahmed urged the government to allocate funds for plastic garbage recycling management saying that the country now produces 400 million metric tons of plastic goods which will reach 800 million metric tons by 2025.

“But there is no substantive initiative for management of the recycling of used plastic goods. It’s so important from a health safety point of view”, he said.

The BPGMEA leaders appreciated the government for taking measures in favor of business community to promote trade and business across the country.

Other leaders of the BPGMEA including vice president KM Iqbal Hossain, Kazi Anwarul Haque, former vice president ASM Kamal Uddin, Ferdows Wahid and Mosaddequr Rahman Nannu.

Source: United News of Bangladesh