Automobile and transport sector businessmen Monday urged the government to reduce tax on passenger ferry boats, waive import duty on capital machinery for CNG conversion and patronise local motor parts making industries.
They made the proposals in a pre-budget meeting with the National Board of Revenue (NBR), chaired by revenue board chairman Dr. Nasiruddin Ahmed. CNG (compressed natural gas) Filling Station and Conversion Workshop Owners' Association representative Abdullah Al Manun urged the NBR to waive 3.0 per cent Advance Trade VAT (ATV) and 3.0 per cent Advance Income Tax (AIT) on import of capital machinery for CNG conversion and filling stations. He said the government has promoted use of CNG to keep the environment pollution free but the tax on capital machinery of CNG has been imposed in 2010 budget.
A total of 600 CNG filling stations and 150 conversion workshops have been established in the last seven years with an investment of about Tk 15 billion, he said. Use of CNG helped the country to save nearly Tk 12 billion foreign currency on import of petroleum annually, he said. Responding to the proposal, NBR chairman said the importers can adjust the advance tax with their actual payable tax. Mamun said nearly 300 stations out of 600 are incurring loss so it is difficult for them to adjust the tax later. Bangladesh Inland Waterways (Passengers carrier's) Association senior vice president Md. Badiuzzaman Badal said the small river vessels are in trouble with the narrowing of river routes and other navigation problems.
Around 300 small river vessels have been scrapped in the last few years, he said adding that cargo vessels and big ships are being built with little attention to small passenger carriers.
He said tax on air condition for small river vessels is 15 per cent presently while it is 5.0 per cent for bus and train. Bangladesh Assembling and Manufacturers Association representative Mohammad Ali Deen proposed the government to help local motor cycle manufacturers by increasing tax on its import.
News Source: The Financial Express