The plastic goods manufacturers and exporters of the country demanded a reduction in import duty to 1 per cent in the proposed budget for importing machinery, parts, and raw materials.
Shamim Ahmed, president of the Bangladesh Plastic Goods Manufacturers and Exporters Association, placed the demand while speaking at a press conference on the proposed budget for FY26 in the capital on Wednesday, where he presented 15 proposals related to the plastic industry budget.
As per an SRO issued in 2021, members of garment and textile sector associations are entitled to only 1 per cent import duty on machinery, along with exemptions from VAT and other duties, they recalled.
But, the plastic goods exporters have to pay import duties ranging from 25 per cent to 50 per cent on machinery and parts imports, they said.
鈥楨xtending the same benefit to plastic manufacturers would help the sector become more self-reliant and globally competitive in exports,鈥� he added.
He also said that to enhance skills and production capacity, increased use of machinery and modern technology is essential.
鈥楤ut due to complications with duties and VAT, many companies are discouraged from importing new machinery,鈥� he added.
He also said that despite the country鈥檚 most promising sector, the plastic item manufacturers have to pay a 5 per cent duty to import raw materials.
He urged the government to reduce it to 3 per cent in the implementation of the proposed budget.
The plastic manufacturers urged the government to fix the VAT rate at 5 per cent on the production level of plastic tableware and kitchenware, instead of the government鈥檚 proposal to raise the VAT by 7.5 per cent and then 15 per cent in phases from the existing 5 per cent.
To protect the local plastic industry, they urged the government to revoke the proposal to reduce supplementary duty on the import of some plastic items, which the government had reduced by 5 per cent and 10 per cent.
These items included plastic hangers, doors and windows, furniture, crates, plastic pallets and others.
The association also urged raising the customs duty to 25 per cent from the existing 15 per cent on importing rigid PVC sheets and PVC foil to safeguard the local plastic industry.聽
He also stated that nearly all plastic manufacturing units have suffered over the past one and a half years due to the ongoing energy crisis, with many forced to shut down.
