Speakers
lauded the government for announcing budget FY 2021-22 proposing a a
10-year tax exemption for 'Made in Bangladesh' brands to speed up the
establishment of mega industries and production of import-substitute
industrial goods in Bangladesh.
They said, the exemption will apply
to manufacturers of three- and four-wheelers, home and kitchen
appliances and light engineering products under condition that their
local value addition will be 20%-40%, local employment and promote the
"Made in Bangladesh" brand. During the last one decade,
locally-manufactured household equipment have taken up 90% of the total
market. Apart from local entrepreneurs, foreign companies such as
Samsung and LG have set up factories in the country.
However, they
also proposed a five-year extension of the VAT exemption for
manufacturers of motor cars and motor vehicles to 'maintain the existing
momentum of growth in local industries'. In addition to tax exemption,
these industries will also enjoy VAT and advance Income tax (AIT) for
import of raw materials / components.
Companies producing three- and
four-wheelers could get further ten-year exemption if they met
additional condition of investment of at least Tk100 crore.
The
speakers were brainstorming at a webinar titled on "The National Budget
for 2021-22: Private Sector Perspective" jointly organized by
International Business Forum of Bangladesh (IBFB) and Bangladesh
Enterprise Institute (BEI) on Saturday.
Planning Minister M. A.
Mannan, MP, was the Chief Guest at the webinar presided over by
Energypac Power Generation Ltd Managaing Director and CEO IBEF President
and Humayun Rashid. Centre for Policy Dialogue (CPD) Senior Research
Fellow Towfiqul Islam Khan was the Key Note Speaker.
IBFB Vice
President M.S. Siddiqui, Policy Exchange of Bangladesh Chairman Dr. M.
Masrur Reaz, Former NBR Chairman Dr. Muhammad Abdul Mazid, Bangladesh
Institute of International and Strategic Studies Research Director Dr.
Mohammad Mahfuz Kabirspoke as Designated Discussants.
BEI President
Ambassador M Humayun Kabir delivered the welcome remarks and IBFB Vice
President Finance Ms. Lutfunnisa Saudia Khan, delivered the vote of
thanks.
Among others Mr. Hafizur Rahman Khan, Immediate Past
President, IBFB and Chairman, Runner Group of Companies, Dr. Md. Ali
Afzal, Director, IBFB and Managing Director, Krishibid Group, Lt. Gen M.
Harun-Ar-Rashid, Bir Protik (Retd.), Chairman, Governmental Relation
and Advocacy Committee, IBFB, Managing Director, Rashid Krishi Khamar
Limited and Prof. Dr. Hosne Ara Begum (Ashoka Fellow & PHF), Founder
Executive Director, TMSS, Bangladesh spoke at the webinar.
The
budget also proposes to withdraw AIT (advance income tax) on certain raw
materials of iron products, scrap vessels. Similar withdrawal also
proposed for the raw materials ethylene glycol, terephthalic acid,
ethylene/propylene of advanced industries such as PVC and PET Resin. The
AIT on import of ocean-going ships and raw materials of cement has been
reduced by one percentage point.
The speakers also proposed VAT
exemption facilities be extended for manufacturers of LPG cylinders by
another year, and for refrigerators, freezers and their compressors by
one more year, polypropylene staple fibre by two more years, air
conditioners and their compressors by three more years, and motor cars
and motor vehicles by five more years.
