Most of the backward linkage industries in the country are small and medium sized. Therefore, the corporate tax rate in this sector should be less. Traders have demanded a corporate tax of 10 to 15 per cent for the backward linkage industry to increase competitiveness.
The demand was made at the first meeting of the FBCCI Standing Committee on Backward Linkage Industries held at noon on Thursday (February 10).
Abul Kalam Bhuiyan, chairman of the committee, told a meeting at the FBCCI office that a corporate tax rate of 10 to 15 per cent for the backward linkage industry would help in the development of the industry.
Abul Kalam Bhuiyan also demanded that the entrepreneurs should settle the land at low cost for the expansion of this industry.
Speaking as the chief guest at the meeting, FBCCI Vice President MA Momen said, “Today’s big companies started their journey as backward linkage industry. Therefore, the role of this industry in the overall development of the country is undeniable. Industrialization is not possible without development of this sector. If there is no backward linkage, the supply chain of the industry will break down. Therefore, the development of this industry is very important. That is why this sector should be given due importance in the policy making of the government.
Director-in-charge of the committee said. Yashodha Jeevan Debnath called upon the backward linkage industrialists to take concerted efforts to establish a separate industrial zone for the sector. He assured cooperation to get the necessary bank loan for this.
Dr. Yasodha Jeevan Debnath said, “Expansion of backward linkage industry is essential to meet the challenges of post-LDC industrialization.”
At the meeting, the traders pointed out harassment of revenue and port officials, excessive licensing and renewal provisions, violation of PPR provisions in government procurement process, export inequality in importing the same product and tariff inequality in backward linkage industry as major obstacles to its development.
They demanded inclusion of backward links in the forthcoming industrial policy, provision of low cost land, making BSIC more dynamic and improved, giving priority to local products in government procurement as per PPR provisions and discouraging imports to protect domestically produced products.
The meeting also demanded that in the case of bank loans, one company owned by the same industry group should not check another company in view of its financial condition.
Also present at the meeting were FBCCI directors Vijay Kumar Kejriwal and Harun Aur Rashid, co-chairmen of the committee Chaitanya Kumar Dey (choice), Md. Salauddin Yusuf, Zia Haider Mithu and other members.
Also present was FBCCI Secretary General Mohammad Mahfuzul Haque.