The New Nation - Internet Edition

BUSINESS REPORT

Bangladesh Engineering Industry Owners' Association (BEIOA) yesterday called upon the government to withdraw import duty on basic raw materials of light engineering sector in the proposed budget of fiscal year 2008-09.

The BEIOA leadrers placed their demands at a press conference at Dhaka Reporters Unity (DRU).

"We urged the government to withdraw import duty on basic raw materials as the light engineering is a thrust sector of the country. But, the government did not fulfil our demands in the proposed budget. If implemented, the new budget would create impediments to develop the sector," Abdur Razzaque, president of BEIOA, said.

He said the government should also withdraw VAT on repairing service charge to survive the sector, he added.

Razzaque said the government has lifted import duty on industrial machineries. But, it has imposed 100 per cent import duty on commercial capital machineries. It would create a setback in this priority sector, he further said.

"None of the countries of the world but Bangladesh had imposed VAT on repairing service sector. It will create a bad impact on this sector. The government should withdraw the VAT to boost the sector," Razzaque said.

According to the BEIOA leaders, some 20 lakh workers are now employed in around 40,000 light engineering industries of the country. The growth rate is 30 per cent in the sector in each fiscal year.

The leaders of BEIOA hoped that the light engineering sector is likely to fetch export earning worth $310 million this fiscal year.

The export volume of the products will decline in the next fiscal due to government illogical decision, they observed.

Former BEIOA president BEIOA Alhaj Abul Hasem, former joint secretary Sabbir Ahmed, finance secretary Md Abdul Alim and organising secretary Abul Hasem were present at the press conference.