Paper importers for customs duty cut to boost business, curb corruption

Highlights:

• Importers call for duty cut to 5% from 15% in the upcoming budget
• They say lower duties would reduce corruption, curb tax evasion, and boost government revenue
• They demanded lowering the income tax and VAT appeal deposit rates from 10-25% to 5%
• Associations called for customs valuation based on actual transaction values to protect genuine importers

The country's paper importers and traders demanded lowering custom duties to 5% from 15% ahead of the national budget for the fiscal year 2025-2026.

The demand was placed at a pre-budget press conference held at the National Press Club in the city today (27 April), jointly organised by four leading trade associations linked to the business--- Paper Importers Association, The Bangladesh Paper Merchants Association, Metropolitan Press Owners Association Bangladesh and Chattogram Paper & Cellophane Traders.

The associations also presented some recommendations aimed at enhancing business discipline, reducing corruption, preventing tax evasion, and safeguarding employment for over half a million workers in the paper and packaging sector. 

Shofiqul Islam Vorosha, president of Bangladesh Paper Importers Association, said that a 5% CD, aligned with the plastic industry, will reduce corruption, curb tax evasion, and increase government revenue by thousands of crores of taka.

Mohammed Belal, secretary, Chattogram Kagoj & Cellophane Baboshai Group, said, "Currently, 10% deposit is required for Income Tax appeals at the Appellate Tribunal, and 25% for High Court. We demand to reduce both to 5% to prevent harassment by corrupt officials."

"Similarly, the 10% deposit rule for VAT appeals should also be lowered to 5% to discourage frivolous audit objections and ease business operations," he demanded.

The associations urged for customs valuation based on actual transaction value – as per Rule 4 of Customs Valuation Rules 2000 – to prevent financial losses for genuine importers.

"Failure to do so will benefit bond abusers and cost the government significant revenue", said Mohammed Khorshed Alam, vice president, Bangladesh Paper Importers Association.

Mohammed Belal also said the fourfold increase in storage rent – effective from the 8th day of Common Landing Date – is unjustified, especially during Eid holidays when clearance delays are unavoidable.

This excessive charge will raise production costs, increase product prices, and harm businesses, he said, demanding the reversal of the hike. 

Belal urged the government to address these demands in the upcoming budget to sustain jobs and economic stability. He said the paper and packaging sector employs over half a million people nationwide. 

The associations requested the government's urgent consideration of these proposals "to ensure a fair, transparent, and business-friendly environment, which will ultimately boost revenue, reduce corruption, and protect employment."

"We call upon policymakers, media, and stakeholders to support these crucial reforms for the greater economic benefit of Bangladesh," said Anowaral Azim, secretary, Bangladesh Paper Merchant Association.

According to the associations, they import and trade nearly 1 million tonnes of paper.