Techno Venture Ltd, a local electrical component manufacturer, yesterday demanded tax holiday facilities for local manufacturers in the upcoming budget.
It also demanded 15 percent cash incentives for the electrical component manufacturing industry.
"As the government is yet to have any policy to offer tax holiday to the electrical manufacturers, local investors are being discouraged to invest in the industry. As a result, the government is importing transformers, meters, and other electrical equipment," said AHM Mahtab Uddin, chairman of Techno Venture Ltd, while addressing a press conference in Dhaka.
Syed Tanvir Hossain, former secretary of Forest and Environment Ministry, MA Malek, former chairman of Power Development Board (PDB), and Abdul Awal Mintoo, former president of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), were present at the conference titled 'Electricity and Beneficial Policy for Industrial Growth'.
Mahtab Uddin also demanded for imposing a 25 percent duty on import of finished meters, parts and other accessories of electrical products.
He said local companies are able to manufacture meters and meter components such as base casing, terminal cover, nameplate, potential coil and current coil, but they have to pay 6 to 13 percent duties to import raw materials.
He urged the government to cut duty from existing 13 percent to 5 percent on import of raw materials of meter components.
He alleged that in the name of exporting, some companies in the export processing zones are importing copper rods and selling them to local companies, depriving the government of losing revenue. He urged the National Board of Revenue (NBR) to take immediate steps to protect such illegal imports.
He also urged the government to establish a testing laboratory for examining the locally produced and imported electrical equipment.
Former FBCCI president urged the government to increase 15 percent power generation every year for effective generation of industrial production.
