Increasing the tax demand to discourage mobile phone import
Market analysts, economists and market participants of the sector think that the budget for the fiscal year 2018-19 is a timely decision of VAT and surcharges for the mobile phone manufacturer. According to them, maintaining the proposed VAT and shool structures requires some encouragement to the assembling by increasing the tariff on mobile phone import and discouraging the import.
Finance Minister Abul Maal Abdul Muhith presented several proposals to encourage local mobile phone manufacturing activities in his budget speech on Thursday (June 7, 018). It has been said that the release of surcharges on mobile phone production and issuing a separate notification with the VAT exemption facility at the production stage of the mobile phone has been mentioned in the country. In order to establish the true manufacturing companies in the country.
In the notification issued with the proposed budget, the Value Added Tax Exemption - 168, the VAT exemption facility is available for the manufacturing company. For this reason, the production company has the ability to produce minimum parts such as PCB, Housing and Casing, Battery, Charger etc. and the factories should have their own machineries to produce these parts. In all, the production company will have to add minimum 30 percent of the relevant product.
Mohammad Shahabuddin (ACS), Secretary-General of Computer and Mobile Manufacturers and Exporters Association of Bangladesh (Proposed), said that now a standard mobile phone is being manufactured in Bangladesh. Therefore, the government's timely decision to provide benefits to the producers or manufacturers. He said there is a need to make a difference between the importing and complete phone import. As a result, the assemblars will also be benefitted by increasing duty on import. Domestic investors will benefit. The import will be reduced. The foreign currency will be saved.
Former caretaker government adviser and economist analyst. Akbar Ali Khan said that the development of the country does not improve if the allocation for non-productive sectors is increased. Rather than reaping tax from non-productive sector, the allocation for the productive sector can be increased, the benefits can be given. Priority in technology sector is now demanding time. Positive decisions have been taken in the proposed budget. Some of this will work as a tool for mobile production. As a result, the production of mobile phone accessories can increase in the country.
He also said that the development of any industry is positive for the country's economy. Unemployment decreases in industrial growth. This will also have a positive impact on our economy.
Economist said. Kazi Khaliquzzaman Ahmad said the proposed budget is helpful for the domestic technology production industry. Some companies in the country have already proved their ability to mobile phones. In the proposed budget, the increase in the production of indigenous IT products will increase. Besides, investment in this sector will increase.
He also said that the foreign currency will be saved when the country's IT products are manufactured. More employment opportunities will be created. It can also make a good contribution to our GDP.
According to market analysts, there is a significant difference between technology producers and advertisers. If there is a higher tax on imports, domestic industry will get protection.
The organizers of this sector say that day-to-day those who depend on trade; They are opposing the government's good decision making profit by importing from abroad. Which is not desirable either. Now the time has come to create Made in Bangladesh products to create their own position in the country and abroad market.