Plastic product manufacturers for withdrawal of VAT


16th June, 2019 09:56:16 printer

Plastic product manufacturers for withdrawal of VAT

Manufacturers of plastic goods have demanded withdrawal of value added tax (VAT) imposed on the plastic items except tiffin box and water bottle in the proposed national budget for 2019-20 fiscal year.

Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) made the demand at a meeting on Sunday, saying the decision to impose 5 percent VAT on common plastic goods will hit hard the manufacturing industry.

The meeting, presided over by BPGMEA president Jasim Uddin, said it is not possible to apply VAT on the vendors of plastic goods who sell essential plastic items like plastic plate, mug, jug, dish, bucket and cover at villages through door-to-door visit.

“Currently, about 200 local small and medium enterprises are involved in the production and sales of plastic goods while over 5 lakh people are working in the sector to make their earnings,” the meeting said.

It claimed that a major portion of these people are retail vendors who are solely dependent on this sector. They sell plastic goods in exchange for old things, the BPGMEA said. “Following the imposition of VAT, the price of plastic goods will go up and it’ll directly affect the common consumers,” it added.  

The BPGMEA expressed grave concern over the government’s plan to borrow some Tk 47,364 crore from the banking system, saying this will aggravate the liquidity crisis in the banking sector for which the interest on loan will soar and private sector credit will not be able to avail the bank credit. “As a result, the private investment will be affected,” it added.