Packaging sector demands 10pc cash incentive

Leaders of the Bangladesh Corrugated Carton and Accessories Manufacturers' and Exporters' Association on Saturday urged the government to provide 10 per cent cash incentive for their industries which belong to a totally export-oriented sector.

'The government is providing cash incentives to the industries in the export-oriented sectors, but the packaging and accessories industries have been deprived of the incentive despite being totally export-oriented,' said association's president Rafez Alam Chowdhury at a post-budget press conference.

Rafez said that the industries ministry had recommended to the finance minister that the packaging and accessories sector should get 10 per cent incentive but the latter had not responded positively.

He said that although the export-oriented

industries are entitled to loans at lower interest from the Export Development Fund formed by the Bangladesh Bank, the packaging and accessories industries are not given the facility.

He claimed that the industries in this sector earned $1.8 billion from export in FY2009-2010 and it is likely their revenue will stand at $2.75 billion at the end of the current fiscal year.

However, the association appreciated the government's proposal to extend the period of licence renewal for bond from 1 to 2 years and the withdrawal of duty on import of raw materials required for setting up Effluent Treatment Plants.

The association demanded withdrawal of 9 per cent value added tax imposed on rent of buildings used by the industries of this sector.

It urged the government either to restore the 0.25 per cent tax at source for all export-oriented industries or restore the provision of imposing 10 per cent tax on the profit earned by the association.

Rafez also demanded extended the same bond facilities enjoyed by the Bangladesh Garment Manufacturers and Exporters' Association and Bangladesh Knitwear Manufacturers and Exporters Association.

The association's senior vice-president Mir Mahmood Ali, vice-presidents Nazimuddin Chowdhury and Abdul Kader Khan were also present at the press conference.

Source: New Age

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