Aluminium utensils makers demand VAT exemption

Dhaka,  Wed,  23 August 2017
Published : 18 Jun 2017, 22:22:18

Aluminium utensils makers demand VAT exemption

Proposed 15pc rate to imperil 300 manufacturing units
FE Report

Aluminium utensils manufacturers urged on Sunday the government to not impose VAT on the sector considering its mass use by ordinary people.

They said the proposed 15 per cent Value Added Tax (VAT) on the aluminium utensils in the national budget for the fiscal year (FY) 2017-18 would create problem for both the manufacturers and customers.

Bangladesh Aluminium Manufacturers' Association (BAMA) made the demand at a press conference, held at the Dhaka Reporters' Unity (DRU).

The BAMA president Obaidur Rahman, secretary general Mustafa Hindal, President of Aluminum Shop Owners' Association Shah Jahan Fakir and secretary Abdul Malek Shikdar attended the conference, among others.

Addressing the conference, Obaidur Rahman said aluminium utensils were mostly used by lower and middle class people of the country. The sector has been exempted from VAT payment since its inception.

Besides, aluminium manufacturing units employ more than 0.1 million people, who are winning bread for their families, he said.

"If the government doesn't backtrack from its decision to impose VAT on the manufacturers, it will jeopardise both producers and customers due to increased cost," he said.

He said more than 300 companies were involved in producing aluminium utensils across the country. However, the figure would be much higher when the micro units are also taken into consideration.

Mr Rahman said that price of the metal on the international market has risen in recent years.

The traders import aluminum at higher price, which has resulted in higher price of finished goods, he said.

"We make no complain about the tax we are paying on imported raw materials," he said, adding additional tax for value addition would push up the price paving way for the flooding of imported goods.

Neighbouring Indian manufacturers produce aluminium utensils at cheaper price due to the availability of the metal in the country's mines, said Mr Rahman, who is a former director of the FBCCI.

Considering the aluminium manufacturing as a labour-intensive sector, he made an appeal to the government to continue to exempt the sector from VAT payment.

He said the aluminium manufacturing for real estate and construction sector is separate from the utensils manufacturing businesses.
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