NBR chief blasts abusers of duty benefits

National Board of Revenue (NBR) Chairman Abu Hena Rahmatul Muneem yesterday said they provide duty benefits to industries after careful consideration as a section of dishonest businesses abuse such privileges, causing tax losses for the state.

"When any duty support is given to an industry, a group of businesspeople abuse those benefits. As a result, it becomes a threat to the industry," he added.

Muneem made these comments at a pre-budget meeting at the NBR headquarters in the capital with representatives of four business associations, including the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA), Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB), Bangladesh Tanners Associations (BTA), and Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida).

Muneem said the NBR provides such benefits very carefully.

He said if there is any excessive duty on the import of chemicals that will be used in the production process, the NBR must consider it.

"However, it should be ensured that the chemical is not used in alternative ways or misused," he added.

As an example, he cited the misuse of industrial salt. When the price of industrial salt became lower than the price of edible salts, some businesses mixed industrial salt with edible salt, he said.

Muneem also underscored the maximum utilisation of domestic raw materials, saying they should be exported abroad after adding as much value as possible.

"We have to think about how to add more value to locally produced products, including leather and agricultural products while ensuring proper compliance," he added.

At the meeting, Md Habib Ullah Dawn, president of Barvida, placed a proposal to increase the depreciation allowance for imported reconditioned motor vehicles from 35 percent to 50 percent and withdraw the existing 20 percent supplementary duty (SD) on 10 to 15-seat microbuses.

Depreciation is the decrease in the monetary value of an asset over time due to use, wear and tear or obsolescence.

"If these proposals are considered, car imports will increase and the provision will play an effective role in increasing revenue," Dawn said.

Similarly, the market for reconditioned cars will expand at the grassroots level and many new employment opportunities will be created, he added.

The BCMEA urged to withdraw the existing 15 percent and 10 percent SD on the production of domestic tiles and sanitary products respectively.

The BTA also demanded to halve the tax deduction at source to 0.50 percent from the existing 1 percent.