Revised National Budget will save the new Mobile Assembling Industry: BMPIA

DHSKA, June 28 (NsNewsWire) –The revised budget proposal of 2018-19 fiscal year will help the local mobile handset assembling industry to survive and thrive. The government has finally reduced the proposed 15% VAT on raw materials of handsets to 5%, thus facilitating the way to build Digital Bangladesh. Mobile handset is one of the main carriers of digital transformation across the country.
Earlier, during 2017-18 national budget proposal, the Finance Minister announced VAT waiver for raw materials for assembling handsets locally. Based on that supportive duty structure, few BMPIA members invested in establishing local mobile handset assembling factories. World renowned handset maker Samsung established their factory in Narsingdi through their local partner Fair Electronics Ltd. (FEL). Besides this, Symphony established their factory in Savar; Itel, Five Star, Walton brands have established their factories in Gazipur, while ‘We’ branded handset maker “Aamra Holdings” set up their factory in Mirpur. A few factories also went to production already.
However, in proposed national budget of 2018-19, NBR imposed 15% VAT on raw materials for assembling handsets. This shocked the new investors, and BMPIA brought this to policymakers’ notice. As a result, the government has finally reduced this VAT to 5%.
From BMPIA, we welcome this initiative to support the newly established industry. We thank the Finance Minister, the Telecom Minister and the NBR Chairman for their understanding and action.
The government has just given license for 4G. However, availability of 4G handset across the country is a factor of 4G proliferation and building Digital Bangladesh. BMPIA President Mr. Ruhul Alam Al Mahbub holds the view that government’s assembly-industry friendly policy will help to spread the benefits of 4G to marginal people. He expects that the government will consult the relevant sector associations in policy making in future. He said that the investors who already invested millions in mobile assembling factories were panicked; but now they are relieved. He also believes that the government will look after the matter so that such a policy does not get changed every year thus shocking the businessmen. Press Release