BPGMEA demands cash incentive for all bonded, non-bonded producers
25 January 2023
Staff Reporter :
The entrepreneurs of Bangladesh plastic and plastic goods manufacturing industry demanded 10 per cent cash incentive for all bonded and non-bonded firms in a bid to encourage the businesses to export more.
They also want Utilisation Declaration (UD) issuance power, withdrawal of Value-Added Tax (VAT) on plastic toys and crockeries items, acceleration of Business Promotion Council, formation of universal packaging act and tax holiday facility for the plastic industry, among others.
The leaders of the Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) came up with the demands while speaking at a press conference at its head office in the city on Tuesday.
The press conference was arranged to inform the nation about a four-day International Plastic Fair (IPF), which is scheduled to be started on February 22 in Dhaka aiming to create new markets for locally made plastic products.
The BPGMEA and Yorker Trade and Marketing Service Co Ltd will jointly organise the fair at the International Convention City Bashundhara in Dhaka.
About 21 countries are expected to participate in the exhibition. The countries include China, Taiwan, India, Vietnam, Sri Lanka, Pakistan, Indonesia, South Korea, Belgium, Canada, USA, France, Hong Kong, Italy, Japan, Malaysia, Austria, Singapore, Turkey and the United Arab Emirates, the BPGMEA said.
The IPF, one of the biggest events in South East Asian countries, will help increase investments, market size and exports in the plastics sector, said the BPGMEA President Shamim Ahmed.
It is expected that this sector will play a greater role in the national economy in days to come, he added.
Shamim said, "Currently, only non-bonded plastic and plastic goods producing firms are enjoying 10 per cent cash incentive. But, we think all the bonded and non-bonded firms should be brought under the cash incentive facility by changing law."
"The global market size of the plastic goods is around $570 billion. Of them, Bangladesh's share is only 0.1 per cent or around $1.2 billion yearly. The sector is working to grab 3 per cent global share," he informed.
He also said, "There are around 5030 micro, small, medium and large plastic industries in the country and the firms are producing goods worth around Tk 40,000 crore. The government earns revenues worth over Tk 3500 crore each year. Over 12 lakh people are involved with in the sector."
The firms are producing plastic household items, crockeries, packaging materials, plastic mould, toys items, pharmaceuticals items, plastic furniture, melamine items, garments accessories, PP woven bag, automobile, electric & electronic Items.
