Paper importers, traders demand 5 percent CD to boost business, curb corruption
Senior Reporter:
Ahead of the upcoming national budget for the financial year 2025-2026, the country’s paper importers and traders Sunday have demanded for curbing custom duties to 5% from previous 15 Percent.
Four leading trade association linked to the business— Paper Importers Association, The Bangladesh Paper Merchants Association, Metropolitan Press Owners Association Bangladesh, and Chattogram Paper & Cellophane Traders jointly organised a prebudget press conference, held at the National Press Club in the city.
The associations present 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.
The associations place their demand including for a 5% Customs Duty (CD) on high-quality paper and paperboard imports (HS Code 4810), essential raw materials for publishing, packaging, and pharmaceuticals.
Shofiqul Islam Vorosha, president of Bangladesh Paper Importers Association,
said 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 & Cellophone 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 dishonest officials.
Similar 10% deposit rule for VAT appeals should also be lowered to 5% to discourage frivolous audit objections and ease business operations, he said.
The associations have 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 were unavoidable.
This excessive charge will raise production costs, increase product prices, and harm businesses, he said.
Thus the associations demand to revert to its previous rates, he said.
He said paper and packaging sector employs over half a million people nationwide.
Belal urge the government to address these demands in the upcoming budget to sustain jobs and economic stability.
The associations earnestly request 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 Amowral Azim, secretary, Bangladesh Paper Merchant Association.
According to the associations, they import and trade nearly 1.0 million tonnes of papers.
Nearly 500,000 people are engaged in the sector.