Experts have called for the continuation of the 15 percent value added tax (VAT) exemption for the domestic compressor and refrigerator manufacturing industry.
The supply crunch of raw materials and spare parts in the international market has resulted in price hikes. The prices of refrigerators have already gone up at the consumer level, reports UNB.
So, experts have suggested maintaining VAT exemption and providing more assistance to the industry.
VAT exemption on compressor and refrigerator production was extended for one year in the budget for the fiscal year 2021-22.
Economist Abu Ahmed, honorary professor at the economics department of Dhaka University, said: “Bangladesh has made big strides in manufacturing compressors and refrigerators. Domestic companies are doing very well in this sector.”
“So, it is necessary to increase the duration of VAT exemption for the domestic compressors and refrigerators manufacturing industry.”
Bangladesh Trade and Tariff Commission Chairman Afzal Hossain said: “The existing 15 percent VAT exemption on compressor and refrigerator manufacturing industry is conducive to boosting the domestic industry. We will seriously consider the demand for any policy support sought by domestic entrepreneurs.”
The proposal for extending the duration of VAT exemption for the compressors and refrigerators manufacturing industry will be seriously considered for the development of domestic industries, Industries Secretary Zakia Sultana said.