Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) has demanded reconsidering the decision regarding the change in the rate of cash incentives for the industry. In a statement, BPGMEA president Shamim Ahmed said the change in the rate of cash incentives is not helpful and timely for the industry. “Rather, it will bring unintended risks and disasters to other industries including the plastics sector", he added. He also demanded change of the decision on an urgent basis before having a major negative impact on exports and maintaining 10 percent cash support against the export of plastic products until 2026. ABB leaders congratulate NBR Chairman on reappointment The statement came against the backdrop reduction of cash incentives for the plastic sector from 10 percent to 8 percent through Bangladesh Bank's FE circular number-02 dated January 30. It said that the plastic sector is an emerging and promising sector. It is diversifying export products according to the needs of foreign buyers and earning foreign exchange by exporting 150 varieties of plastic products to about 126 countries using modern technology. Direct exports in FY 2022-2023 amount to USD 209.86 million. As a backward linkage industry exports to the country's largest export sector garments and other industries, earns about US$ 950 million. That is, the export volume (Direct and Deemed) is above 1.2 billion US dollars. Some 1.5 million people are employed here in which 30 percent of them are women. It has been growing at a rate of 20 percent for the past two decades. The position of the plastic sector in exports is 12th. Brac Bank leads CMSME Cluster Financing Workshop in Laxmipur to fuel growth The current government has also included the plastic sector as a priority sector in the Import and Export Policy-2024. The circular does not mention the introduction of alternative incentives in the duty-compliant system post-LDC transition, the statement said. However, many middle-income countries have been providing alternative incentives rather than direct incentives for their industries. The issue of providing alternative incentives has come up in various government and private studies of the country. "We do not think that sudden reduction of the existing system, without an alternative system, is a helpful step for industry and economy", Shamim said. On the other hand, he said, while the incentive package is being cut, competing countries are increasing support for their industries such as Export development fund in India, Vietnam Trade Policy and Promotion Project, and even in rich countries like the USA, cotton cultivation is subsidized to encourage export trade. Bangladesh will face the challenge of double transformation after 2029. BAT Bangladesh secures 'Top Employer' award for fifth time At such a time, as long as the LDCs were enjoying benefits as per the provisions, it would have been more reasonable to extend other facilities, including cash incentives through which the industry could be sustained, BPGMEA president Shamim said. In the past two years, due to various reasons including the Covid-19 epidemic, Ukraine-Russia war, Palestine-Israel war, economic instability and deadlock have been created in Bangladesh, like the whole world, he added.

Local manufacturers of plastic products have placed a 4-point list of demands including withdrawal of value added tax (VAT) on their purchase of raw materials to facilitate their business in the country.  Addressing a press conference, leaders of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) said the local plastic goods producers collect the used plastics from local sources as raw materials to manufacture their finished products which are used by people from all strata in rural and urban areas.  “But the VAT waiver was withdrawn in the 2017-18 financial year from the plastics goods which are mainly used as crockeries items by the poor and low income people. So, we demand the withdrawal of VAT for next five years to reduce the product cost,” said Shamim Ahmed, president of the BPGMEA, at the press conference at the organisation's office in the city on Monday. He also sought withdrawal of 15 percent VAT from locally made plastic toys, provision for tax holidays, reducing the source tax to 0.25 percent and fixing corporate tax at 10 percent for all business sectors. The BPGMEA also demanded raising the upper-limit of tax-free turnover to Tk 5 crore from the existing Tk 1.5 crore along with reducing the tax regime to 3 percent from existing 4 percent, and giving waiver to 3 percent advance income tax considering the Covid-19 situation.  Shamim Ahmed urged the government to allocate funds for plastic garbage recycling management saying that the country now produces 400 million metric tons of plastic goods which will reach 800 million metric tons by 2025.  “But there is no substantive initiative for management of the recycling of used plastic goods. It’s so important from a health safety point of view”, he said. The BPGMEA leaders appreciated the government for taking measures in favor of business community to promote trade and business across the country. Other leaders of the BPGMEA including vice president KM Iqbal Hossain, Kazi Anwarul Haque, former vice president ASM Kamal Uddin, Ferdows Wahid and Mosaddequr Rahman Nannu.