Bangladesh:Budget receives mixed reaction from textile sector & exporters

The budget for 2008-09 released yesterday received mixed reactions from the recipient industries. Mr Mirza Azizul Islam, Finance and Planning Adviser proposed a further reduction in the present concessionary rate of duty on import of capital machinery and spare parts from 5 to 3 percent.
Mr Mirza also proposed a reduction of import duty on basic raw materials from 10 to 7 percent and an additional 3 percent decrease on intermediate raw materials bringing it from 15 to 12 percent. Besides, the Finance Minister also provided for bonded warehouse facilities to all 100 percent export oriented industries along with an allocation of Tk1,050 crore as export subsidy.
However, the duty on finished products which was considerably high at 25 percent remained unchanged for the budget 2008-09. Industrialists in readymade garment and machinery sector were particularly appreciative of the new budget.