Transport sector leaders on Tuesday urged the government to reduce duties on the equipment and accessories used for vehicles in the upcoming budget for the fiscal year 2021-2022 considering the difficulties they had been facing due to the pandemic.
The office-bearers of nine trade bodies representing roadways, waterways, and airways also asked the NBR to exempt them from advanced taxes and review some of the taxation measures that they attribute as irrational.
They came up with the call during a pre-budget discussion with the top officials of the National Board of Revenue (NBR) at its headquarters in the city.
NBR Chairman Abu Hena Md Rahmatul Muneem joined the meeting virtually, while NBR members joined the pre-budget discussion in person.
Officer bearers of the nine trade bodies – including Bangladesh Inland Waterways (passenger carriers) Association, Cargo Vessel Owners’ Association, Bangladesh Cargo Vessel Owners’ Association, Four Stroke CNG Auto Rickshaw and Three Wheelers Motorbike Owners Association of Bangladesh, and Bangladesh Automobile Assemblers and Manufacturers Association of Bangladesh – joined the meeting.
Khandaker Enayetullah, secretary general of Bangladesh Sarak Paribahan Malik Samity (BSPMS), said though the road transport sector had been declared a service sector in the industrial policy in 2010, the sector was yet to get the facilities as per the policy.
He requested the NBR to reduce the tariff on motor vehicle parts in line with their price in international market.
According to the trade body’s proposal, the government imposed a tariff price of $3.0 per kg on imported equipment in the last budget, resulting in an increase in their operating expenses.
The trade body suggested keeping the tariff on equipment at $2.0 per kilogram as per earlier schedule.
The BSPMS also urged the NBR to exempt 15 per cent VAT on the sector.
“Imposing VAT on us is an irrational policy, as we are paying taxes and fees when we get route permit, tax-token and registration,” the proposal document reads.
Aviation Operators Association of Bangladesh (AOAB) Secretary General Mofizur Rahman said the country’s aviation sector had been severely hard in the pandemic.
Earlier, some aviation operators had to shut their business as they became bankrupt; for the existing operators to sustain, there is a need for a strong policy support form the government, he said.
The sector needed special policy support in line with the government’s vision to become a regional aviation hub, he further said.
He requested the revenue board to assign a separate HS (Harmonised System) code for the import of aircraft equipment to avoid complexities in the taxation system.
He also urged the NBR to exempt five per cent advanced tax on the sector, which has already been suffering from cash crunch.
Mr Rahman also identified the VAT on chartered helicopter service as excessive and requested the authorities to decrease it.
Waterways transport operators requested the NBR to review and reduce the tax on old vessels.
Source : The Financial Express
