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The Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) on Tuesday urged the government to allow 'free of cost' import of raw materials, similar to the facility provided to the textile sector.
Under the ready-made garment industry, factories are provided with the facility to import raw materials sent by buyers 'free of cost' for the execution of export orders. However, the factories under LFMEAB are deprived of this benefit.
The association also demanded the reinstatement of the 12 per cent cash incentive for exports, following a decline in shipments in recent years.
The demands were placed at the 'Pre-Budget Consultation to Prepare for the National Budget for the Fiscal Year 2025-2026 with a Focus on Tax Reforms, Customs Duties, and Value-Added Tax (VAT),' organised by the National Board of Revenue (NBR) at its Agargaon office in the city.
NBR Chairman Md Abdur Rahman Khan presided over the session, where representatives from the Bangladesh Tanners Association, Bangladesh Freight Forwarders Association, Bangladesh Ceramics Manufacturers and Exporters Association, the Federation of Bangladesh Custom Clearing and Forwarding Agents Association, the Intending Association of Bangladesh, the Shipping Agents Association of Bangladesh, and other trade bodies presented their proposals.
LFMEAB President Mohammed Nazmul Hassan placed their demands, which included a rebate on source tax applied to the export cash subsidy, currently set at 10 per cent.
The association also called for tax rebate on import of spare parts and essential machinery, similar to the facilities available to the textile sector, to boost exports and reduce business costs.
Meanwhile, the Bangladesh Tanners Association urged the government to reinstate its 10 per cent cash subsidy.
The association's secretary, Mizanur Rahman, also requested a reduction in tax deduction at source (TDS), currently at 3.0 per cent, by classifying the leather sector as part of the agricultural industry.
The association argued that such incentives could help increase raw leather prices during the Eid-ul-Azha.
Besides, ceramics manufacturers demanded removal of the 15 per cent supplementary duty at the production stage.
They also called for elimination of the 10 per cent supplementary duty on sanitary products.
Moynul Islam, president of the Association, proposed that taxes on imported raw materials such as China Clay and Block Clay be imposed based on the actual usable quantity, considering that 35-40 per cent of these materials are lost due to moisture and waste. Bangladesh Freight Forwarders Association President Kabir Ahmed claimed that licensing of new freight forwarding companies has almost come to a halt.
He also emphasised that foreign companies engaging in joint ventures with local firms should be required to collaborate with Bangladeshi freight forwarders instead of choosing partners at their discretion, to strengthen local trade.