The New Nation - Internet Edition

Staff Reporter

Chairman of the National Board of Revenue (NBR) Mohammad Abdul Majid yesterday said that tax breaks should be allowed only for the priority sectors to help industrial development in the country.

Majid said this at a pre-budget discussion with the RMG sector leaders where the BGMEA demanded for extension of the tax holiday it had been enjoying through a period.

"All countries in the world have provisions for tax breaks for select sectors to help them grow. But such exemptions cannot be applied wholesale without judging the merits or needs of the sectors," the NBR chairman said.

He said tax holiday facilities should be shifted from those sectors, which have earned considerable abilities to the weaker ones for a specific tenure.

"The forthcoming pro-people budget will ensure that indigenous industrial fields flourish, attaching importance to those contributing especially in the country's economy. But the businessmen too must pay taxes duly and take care not to hoodwink the government. Only then, will the nation achieve the expected goal."

Majid was critical of the BGMEA's demand for cutting taxes on RMG equipment imports saying, "No-one tells me to increase taxes in a particular sector by 4-5 per cent. All ask for reductions only."

BKMEA president Md Fazlul Haque raised the issue of businessmen getting harassed by customs officials while importing yarn through Benapole land port.

The NBR chairman assured all that any hurdles in cotton yarn import via Benapole land port would be removed after necessary review.

Moazzem Hossain, researcher of the Centre for Policy Dialogue, said RMG prices were falling in the international markets, which made it imperative for the government to assist the smaller RMG industries survive and compete in the market.

The NBR will sit with 22 sectors to hold talks on the forthcoming 2008-09 budget. The first meeting was held Monday with the agriculture sector.