The Leather Goods and Footwear Manufacturers and Exporter Association of Bangladesh (LFMEAB) has proposed a unified tax rate on the import of raw materials to facilitate easy access to industrial inputs for small and medium exporters. The association argues that the bond management procedure is complex and time-consuming, and that the export of leather goods to the US and Europe has declined in recent times.
LFMEAB’s pre-budget proposal aims to remove major tariff and non-tariff barriers and inconsistencies in fiscal benefits between the leather goods and other exporting sectors. The proposal also includes rationalizing tax at source by lowering it to 0.5% from 1% of existing FOB value and tax holiday for the leather goods industry. The tanners association has demanded tax exemption on import of chemicals and spare parts for the Central Effluent Treatment Plant.
Source: The Financial Express
