Plastic goods manufacturers welcomed the proposed national budget as “business friendly” but urged the government to withdraw Advance Tax from plastic sector.
They also urged the government to take “cautious policy” measures and fully implement the budget proposed for the upcoming fiscal year 2021-22.“Considering the pandemic situation, many export-oriented sectors got Advance Tax exemption up to 2023, but the proposed budget imposed 3 percent Advance Tax on plastic products,” said BPGMEA president Shamim Ahmed at a post-budget press conference on Monday.
He called for Advance Tax exemption facility for the plastic sector too like other export sectors.
Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) president also called for tax holiday facility in the plastic sector like RMG, and fixing source tax at 0.25 percent and corporate tax 10 percent and the corporate tax up to 32.5 percent based on different categories.
He also demanded tax holiday facility for the country’s plastic manufacturers.
"We earnestly request the government to include plastic sector in the tax holiday. The sector should get the opportunity considering its potentials," said Shamim Ahmed.
He said the plastic makers had been supplying without interruption different COVID-19 protective gears to the hospitals and domestic markets.The products included face masks, face shield, goggles, hand gloves, sanitizers, PPE, germ protective bottle, medicine bottle and others plastic related products, he said.
Bangladesh plastic industry employ over 1.2 million people in 5,030 small and large factories and produce goods worth of Tk 350 billion annually, BPGMEA said.
Shamim Ahmed said the country is currently exporting plastic goods worth around $700 million a year, which can easily be increased to $1.0 billion if the government gives further attention to the sector.
He said the size of the global market of the plastic products is around $100 billion and Bangladesh has the ability to earn a huge amount of foreign currency by exporting plastic goods.
BPGMEA president urged policy supports to enhance capacity of the plastic manufacturing factories in Bangladesh.
He called for reducing “higher duty on raw materials of plastic goods, which will indirectly help the country earn more revenue.”
BPGMEA thanked the government for exemption from value added tax on the process of recycling plastic waste to produce granules.
However, the association pointed out that VAT is still being imposed on plastic goods such as plates, jugs, mugs, bowls, tiffin carriers, water bottles, buckets and baskets, which is primarily used by people of low income groups and the extremely poor.
BPGMEA leaders stressed the need to re-fix upward turnover limit to Tk 50 million instead of Tk 15 million considering it “unrealistic” and fix 3 percent tax on it instead of 4 percent proposed.
BPGMEA former presidents ASM Kamal Uddin, Ferdous Wahed, former vice president Gias Uddin Ahmed, KM Iqbal Hossain, Kazi Anowarul Hoque, and other senior leaders were present at the press conference.