The country's leather sector players on Tuesday urged the government to reduce related taxes and VAT so that it stays competitive in the global market during this tough time of Covid-19 pandemic.
The Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) and Bangladesh Tanners Association (BTA) submitted their proposals to the National Board of Revenue (NBR) for consideration in the national budget for the fiscal year 2022-23.
LFMEAB vice president Md Nazmul Hassan placed their 19-point proposals at a pre-budget meeting of NBR at its headquarters in the city, seeking reviews on corporate tax, tax at source and VAT at different stages.
NBR Chairman Abu Hena Md Rahmatul Muneem presided over the meeting while its member Md Masud Sadiq, Apex Footwear Ltd deputy managing director and chief executive officer Abdul Momen Bhuiyan were present, among others.
LFMEAB also sought rebate on tax, duty and VAT for 100 per cent export-oriented synthetic and fabrics-made shoes and bags to boost the export of such items and generate employment.
It also proposed to reduce tax at source to 0.25 per cent from the existing 0.5 per cent considering the harsh business realities during the pandemic.
The association demanded similar corporate tax for the export-oriented leather goods and shoe sector like that of the readymade garment sector.
It also sought a cut in the corporate tax to 10 per cent for the export-oriented leather goods and shoe companies having green building certification.
The advance income tax on cash subsidy should be 3.0 per cent from the existing 10 per cent, proposed the LFMEAB.
Meanwhile, BTA president Md Shaheen Ahmed placed their six-point proposals that include reducing VAT at the import stage to 7.5 per cent from the existing 15 per cent for 44 kinds of raw materials, which are essential for processing and tanning rawhides.
It also sought to import necessary chemicals under facilities like 'supervised bond'.
BTA also sought restrictions on the import of red meat (buffalo meat) to encourage local farmers in cattle rearing.
The association also sought to reduce advance income tax on cash subsidy to 3.0 per cent from the existing 10 per cent.
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