New Age | Ceramic, footwear businesses demand customs duty reform

The Bangladesh Ceramic Manufacturers and Exporters Association proposed withdrawal of existing 15 per cent supplementary duty on local tiles production and 10 per cent supplementary duty on local sanitary product production while the Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh proposed introducing 1 per cent flat import tax rate on raw industrial materials.

They made the proposals at a pre-budget discussion with the National Board of Revenue on Monday at the revenue board’s headquarters in the capital Dhaka on Monday.

The BCMEA proposed withdrawal of the supplementary duties for local tiles product production under heading 69.07 and that of local sanitary product production under heading 69.10.

China clay and ball clay, which are primary raw materials of ceramic industry, consist of about 30 to 35 per cent waste materials, like water and other chemicals, the BCMEA claimed.

Production cost can be reduced if duties on importing such items were calculated excluding the waste portion, it suggested.

It said that customs duty on talc, zirconium ores and concentrates, zirconium silicate, cover coat, printing ink, ceramic fibre, kiln furniture and machinery and others should be reduced, adding that regulatory duty on varnish cover coat, printing ink, nano-chemicals, lavatory seats and covers, flushing mechanisms should be withdrawn.

It proposed increasing tariff rate of ceramic products produced abroad.

The LFMEAB proposed withdrawal of source tax burden from the existing 10 per cent against export cash subsidy and adjustment of 1 per cent source tax on export income to 0.5 per cent and considering that as the final tax instead of minimum tax.

NBR chairman Abu Hena Md Rahmatul Muneem presided over the meeting, where other NBR officials were also present.