Businesses favor 10-15% corporate tax for backward linkage industries

Businessmen want a lowering of the corporate tax to 10-15% from the existing 30%, for backward linkage industries to increase competitiveness.

As most backward linkage industries in the country are small and medium sized, the corporate tax rate in this sector should be less they said, at the first meeting of the Federation of FBCCI's Standing Committee on Backward Linkage Industries at FBCCI Icon on Thursday.

Abul Kalam Bhuiyan, chairman of the committee said lowering the corporate tax to 10-15% would help in the development of backward linkage industries, according to a press release. 

"Entrepreneurs should get industry plots at affordable rates for expansion of the industry," he added.

Bangladesh Chambers of Commerce and Industries (FBCCI) Vice President M A Momen said, "Most large companies of today started out as backward linkage industries. Industrialisation is not possible without development of this sector."

If there is no backward linkage, the industry supply chain will break down. Therefore, the development of this industry is very important, he added.

The FBCCI vice president called upon the government to give due importance to this sector in setting policy.

Director-in-charge of the committee, Joshoda Jibon Debnath, called upon backward linkage industrialists to take a concerted initiative to establish a separate industrial zone for the sector.

Noting that the expansion of backward linkage industries is essential to meet the challenges of post-LDC industrialisation, he assured cooperation in getting the necessary bank loans for this.

The businessmen also pointed to harassment by revenue and port officials, excessive licensing and renewal provisions, violation of Public Procurement Rules (PPR) in the government procurement process, and duty inequality between export oriented and backward linkage industries in importing the same product, as major obstacles to  development.

They also demanded inclusion of backward linkage industries in the forthcoming industrial policy, provision of land at affordable rates, making BSCIC more dynamic and improved, giving priority to local products in government procurement as per PPR, and discouraging imports to protect locally produced goods.

FBCCI directors Bijoy Kumar Kejriwal and Harun or Rashid, co-chairmen of the committee, Chaitanaya Kumar Dey (Chayan), Md Salauddin Yusuf and Zia Hayder Mithu, Secretary General Mohammad Mahfuzul Hoque and other members, were also present at the meeting.