Paper importers, merchants demand reduction of customs duty to 5pc to boost business, limit corruption
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The country's paper importers and merchants on Sunday demanded curbing customs duty to 5.0 per cent from the existing 15 in the upcoming budget for the financial year 2025-2026.
Four leading trade associations linked to the business – The Paper Importers Association, The Bangladesh Paper Merchants Association, Metropolitan Press Owners Association Bangladesh, and Chattogram Paper & Cellophane Traders – placed their demand at a pre-budget press conference, held at the National Press Club in the city on the day, organised jointly by the organisations.
The associations place their demand, including for a 5.0 per cent customs duty (CD) on high-quality paper and paperboard imports (HS Code 4810), essential raw materials for publishing, packaging, and pharmaceuticals.
Shofiqul Islam Vorosha, president of the Bangladesh Paper Importers Association, said a 5.0 per cent CD (aligned with the plastic industry) will reduce corruption, curb tax evasion, and increase government revenue by millions of taka.
Mohammed Belal, secretary, Chattogram Kagoj and Cellophone Baboshai Group, said currently, a 10 per cent deposit is required for income tax appeals at the Appellate Tribunal and 25 per cent for the High Court.
We demand to reduce both to 5.0 per cent to prevent harassment by dishonest officials.
The similar 10 per cent deposit rule for VAT appeals should also be lowered to 5.0 per cent to discourage frivolous audit objections and ease business operations, he said.
The associations urged for customs valuation based on actual transaction value (as per Rule 4 of Customs Valuation Rules 2000) to prevent financial losses for genuine importers.
"Failure to do so will benefit bond abusers and cost the government significant revenue," said Mohammed Khorshed Alam, vice president, Bangladesh Paper Importers Association.
Mohammed Belal also said the fourfold increase in storage rent (effective from the 8th day of the Common Landing Date) is unjustified, especially during Eid holidays when clearance delays were unavoidable.
This excessive charge will raise production costs, increase product prices, and harm businesses, he said.
Thus, the association demands to revert to its previous rates, he said.
He said the paper and packaging sector employs over half a million people nationwide.
Belal urged the government to address these demands in the upcoming budget to sustain jobs and economic stability.
The associations earnestly request the government’s urgent consideration of these proposals to ensure a fair, transparent, and business-friendly environment, which will ultimately boost revenue, reduce corruption, and protect employment.
"We call upon policymakers, media, and stakeholders to support these crucial reforms for the greater economic benefit of Bangladesh," said Amowral Azim, secretary, Bangladesh Paper Merchant Association.
Mr Vorosha further said meeting their logical demands would enhance business discipline, reduce corruption, prevent tax evasion, and safeguard employment for over half a million workers in the paper and packaging sector.
Asked, he said that establishing such plants requires billions of dollars in investment.
“However, Bangladesh currently lacks the capacity to produce paper pulp on the necessary scale, which would involve cutting down millions of trees annually to meet the demand,” he said.
According to the associations, they import and trade nearly 1.0 million tonnes of papers annually.