FE Report (March 15, 2011)
The country's pharmaceutical sector has urged the government to create a level-playing field for the local industries by withdrawing tax on raw materials of their products.
They also made proposals to treat some medical equipment as capital machinery, and lower import duty to 3.0 per cent on the products, which are not produced locally.
Bangladesh Association of Pharmaceuticals Industries (BAPI), in a pre-budget meeting with the National Board of Revenue (NBR), proposed these steps for consideration in the budget of fiscal 2011-2012.
"There are no import taxes on finished insulin and anti-cancer drugs. So, it is necessary to exempt raw materials from value added tax (VAT) at import stage to produce these medicines locally to avoid uneven competition," said BAPI representative Dr M A Malek Chowdhury.
Chowdhury, director (industrial operation) of Popular Pharmaceuticals, also sought withdrawal of pre-shipment inspection (PSI) system and also supplementary duty (SD) on the products, imported under block-list facility.
Mohsina Begum, senior assistant chief of Bangladesh Tariff Commission (BTC), said the NBR should increase tax on import of some medical furniture that are manufactured locally.
There is 5.0 per cent tax on import of medical furniture, and it should be raised to 25 per cent to protect the local industry, she said, citing a recommendation of BTC to increase the tax on medical furniture.
The representatives of Ayurvedic, homeopathic and herbal medicine sectors urged the NBR to continue providing existing tax facilities to help these sectors export their products to different countries.
Amir Hossain, president of Bangladesh Shop Owners Association, demanded withdrawal of VAT on import of surgical equipment, which are not produced locally.
The NBR chairman said the revenue board will hold a meeting with the ministry of health to identify the medical furniture and equipment that are domestically produced and can meet local demand, for taking further steps in this connection.
"We might consider the proposed tax exemption, if it brings positive results for the people and ensures the availability of quality medicine products in the country," he added.
The country's pharmaceutical sector has urged the government to create a level-playing field for the local industries by withdrawing tax on raw materials of their products.
They also made proposals to treat some medical equipment as capital machinery, and lower import duty to 3.0 per cent on the products, which are not produced locally.
Bangladesh Association of Pharmaceuticals Industries (BAPI), in a pre-budget meeting with the National Board of Revenue (NBR), proposed these steps for consideration in the budget of fiscal 2011-2012.
"There are no import taxes on finished insulin and anti-cancer drugs. So, it is necessary to exempt raw materials from value added tax (VAT) at import stage to produce these medicines locally to avoid uneven competition," said BAPI representative Dr M A Malek Chowdhury.
Chowdhury, director (industrial operation) of Popular Pharmaceuticals, also sought withdrawal of pre-shipment inspection (PSI) system and also supplementary duty (SD) on the products, imported under block-list facility.
Mohsina Begum, senior assistant chief of Bangladesh Tariff Commission (BTC), said the NBR should increase tax on import of some medical furniture that are manufactured locally.
There is 5.0 per cent tax on import of medical furniture, and it should be raised to 25 per cent to protect the local industry, she said, citing a recommendation of BTC to increase the tax on medical furniture.
The representatives of Ayurvedic, homeopathic and herbal medicine sectors urged the NBR to continue providing existing tax facilities to help these sectors export their products to different countries.
Amir Hossain, president of Bangladesh Shop Owners Association, demanded withdrawal of VAT on import of surgical equipment, which are not produced locally.
The NBR chairman said the revenue board will hold a meeting with the ministry of health to identify the medical furniture and equipment that are domestically produced and can meet local demand, for taking further steps in this connection.
"We might consider the proposed tax exemption, if it brings positive results for the people and ensures the availability of quality medicine products in the country," he added.
No comments:
Post a Comment