We will look into traders' problems with tariffs, says financial advisor

Finance Advisor Salehuddin Ahmed has promised to look into the problems faced by the country's traders with customs procedures in the next budget.

He said this in a meeting with representatives of top trade organisations before preparing the budget for the fiscal year 2025-26.

Along with the finance advisor, Finance Secretary Khairuzzaman Mozumder, National Board of Revenue (NBR) Chairman Abdur Rahman Khan and other top officials of the ministry were present.

Representatives and administrators of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA), Bangladesh Chamber of Industries (BCI) and other chambers were present on behalf of the traders.

After the meeting, the advisor said: “We have discussed many issues with the traders. In the future, we will take the initiative to conduct some transactions online, to reduce harassment and time.

“We will also look into the problems that exist with customs procedures.”

BCI President Anwar-Ul-Alam Chowdhury Parvez said, “The advisor wanted to know if there were any problems related to income tax or NBR.

“He seemed very positive in resolving the problems of the businessmen. There was no talk about the banking sector or other issues.”

The business leader said, “The advisor wants the tax system to be strengthened, and tax collection to increase.

“Our concern is increasing the capacity of the garment sector. He has said the issues related to Bangladesh Bank should be given in writing.”

BKMEA President Mohammad Hatem said, “I have been talking about customs for a while. I am hopeful this time there will be a change.

“The Chattogram Customs House is providing better service than before. I have thanked the NBR and the finance ministry for this.”

GARMENT SECTOR PROPOSAL

BKMEA presented a written proposal in the meeting, which said to set a 50 percent rate for the next five years, considering tax at source as the final tax collection.

BKMEA is also advocating for income tax exemptions in garment export incentives, a business- and investment-friendly taxation policy, and separating lawmakers from implementers to create a taxpayer-friendly income tax framework.

The organisation has also proposed withdrawing 7.5 percent VAT on jute in the garment industry and 15 percent VAT on recycled fibre.

The written proposal said, “I request the withdrawal of the provision of 200 to 400 percent fine in case of a mistake in the HS code of imported products.

“I am also proposing whether the HS code can be brought to 6 digits or numbers instead of 8 digits.

“In the 2024-2025 fiscal year, VAT on energy-efficient lamps has been increased from 5 percent to 15 percent. I demand the matter be reduced to 5 percent again.”

BKMEA also demands exemption from all types of duties on solar panels and solar inverters with a capacity of more than 10 kilowatts to increase the use of renewable energy.

The organisation has also proposed withdrawing the 3 percent tax on synthetic yarn and withdrawing AT and SD from raw materials.