Bangladesh Local Carton Manufacturers Association (BLCMA) urged the government on Monday to waive tax at source from carton manufacturers and to rein in growing prices of paper in order to help the industry flourish.
The association leaders also called upon paper mills owners to reduce the prices of paper, thereby helping save the packaging industry from incurring financial losses.
They said that many local packaging units faced closure due to the price hike of paper.
Association President MA Bashar Patwary made the call at a press briefing at Sagar-Runi auditorium of Dhaka Reporters Unity (DRU).
He said they could not sustain in the competitive market because the tax deducted at source ranges between 2.0 per cent and 5.0 per cent while their annual net profit is not more than 4.0 to 5.0 per cent.
He also said the carton manufacturers were providing value-added tax (VAT) and taxes to the government.
He said there are about 2,000 industrial units in this sector where around one million people have been engaged.
This sector has been supplying cartons and packets for the packaging of local garments, medicine, edible oil, tobacco, chemical, confectionery, electrical, ceramics, textiles, cosmetics, biscuits, footwear, toys and milk products.
Mr Patwary urged the government to craft a policy to rein in the price hike of paper.
He also urged the government to provide policy and other support for the packaging industry in the next national budget.
