In the pre-budget discussion, the leaders of the organisations representing the import-export related establishments submitted a set of proposals to the National Board of Revenue. The discussion was held in the conference room of NBR on Sunday (13 February). During the discussion, budgets were presented by the concerned organisations including Bangladesh Freight Forwarders Association (BAFFA), Federation of Bangladesh Customs Clearing and Forwarding Agents Association, Inland Container Depots Association (BICDA), and Shipping Agent Association.
Kabir Ahmed, President of BAFFA, an organisation of establishments responsible for delivering import-export goods to their destinations, said a large portion of the country’s imports and exports are handled through freight forwarders. So it is important to look at this sector in particular. Establishments in this sector are being harassed in various ways due to various policy errors and ambiguities. We are 100% ready to pay taxes to the government. However, in this case, he proposed rationalisation and amendment of several policies.
In the forthcoming budget, the traders of this sector have proposed to reduce the tax rate of inland container depot (ICD) management companies from 30% to 10%. Nurul Qayyum Khan, President of the Bangladesh Inland Container Depot Association, said traders in the sector are currently at a loss as it is a low-profit business. Traders are overwhelmed by bank loans. In such a situation, I am proposing to reduce the tax rate of ICD companies to 10% in the new budget. At the same time, he proposed to reduce the withholding tax from 8% and 6% to 2%.
Bangladesh Ship Breakers and Recyclers Association President Md. Abu Taher proposed to reduce the import duty on scrap vessels of the ship-breaking industry from Tk. 1,500 to Tk. 500 per tonne. He said the international market price of scrap ships has skyrocketed. Scrap per tonne has risen from $350 to $800. At the same time, the exchange rate has increased from Tk 85 to Tk 88. In such a situation, he demanded reduction of import duty on scrap ships by Tk 1,000 to keep the market price of iron stable.
Regarding shipyard worker deaths, Zahirul Islam, leader of the Bangladesh Ship Breakers and Recyclers Association, said the death toll among workers has come down drastically. Hopefully in the future it will stop. We are now moving towards green shipyard conversion. We have already converted three shipyards into green yards. 10 more projects are in progress. All the listed shipyards are targeted to be converted into green yards by 2023.
During the discussion, Mofizur Rahman Sajal, President of C&F Agents Association, said that NBR issues different SROs (notifications) on individual issues of C&F. With the addition of new rules, the task becomes difficult. There is a delay in paying the duty. He urged not to issue SROs on the same issues repeatedly.
Syed Mohammad Arif, Chairman of the Bangladesh Shipping Agents Association, demanded that the corporate tax in the sector be reduced to 5%.
Md. Masud Sadiq NBR member said in a statement that the necessary decision will be taken after analysing these proposals. The discussion was attended by senior officials and business leaders of the sectors including NBR member (VAT policy) Zakia Sultana and member (income tax policy) Samsuddin Ahmed.
