Government to Seek Tax Reduction for Ceramic Industry Trade Adviser

Trade Adviser Sheikh Bashiruddin has assured business leaders that the government will attempt to reduce taxes for the ceramic industry, aiming to create a compliant, competitive, and innovative sector. He emphasised that the country will not return to its previous economic situation.

During his speech at the inauguration of the 4th Ceramic Expo held today at the International Convention City Bashundhara (ICCB) in Dhaka, Sheikh Bashiruddin urged business leaders to present reasonable and credible arguments to the government. “We are obligated to listen to you, as we play a supportive role in helping your businesses succeed,” he said.

The event was attended by several notable figures, including Mohammad Hasan Arif, Vice-Chairman of the Export Promotion Bureau (EPB), and the Ambassador of Italy to Bangladesh, Antonio Alessandro. Also present were Moinul Islam, President of the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA), Irfan Uddin, Chairman of the Expo Committee, and Senior Vice-President of BCMEA, Mohammad Mamunur Rashid.

Sheikh Bashiruddin also addressed the issue of non-performing loans, noting that Bangladesh’s current rate of nearly 35% is one of the highest in the world, even exceeding that of war-torn countries like Ukraine, Tunisia, and Lebanon. He pointed out that the previous government had left the economy in a fragile state, but the interim government had successfully brought the reserves up to $32 billion.

He also highlighted that the ceramic industry had been facing challenges with gas supply, particularly mentioning that the president of BCMEA’s factory had struggled the most with this issue. However, he noted that the situation had improved, and if the gas situation at his factory had improved, the same should apply to the broader industry.

Moinul Islam, President of BCMEA, shared that the ceramic sector is growing as a promising industry. He pointed out that Italy’s ceramic market is currently valued at €1 billion, with plans to double it to €2 billion, thanks to a 50% tax reduction for the sector. He suggested that Bangladesh could consider similar policies to stimulate growth in the local ceramic industry.

Mohammad Hasan Arif, Vice-Chairman of EPB, also spoke about the significant potential of the ceramic industry, noting that it has opened new avenues for Bangladesh’s exports. Last year, the ceramic industry’s exports amounted to nearly $35 million.

The Ambassador of Italy to Bangladesh, Antonio Alessandro, remarked that while Bangladesh’s economy has been traditionally reliant on the ready-made garment sector, the growth of the ceramic industry is a positive development and a significant diversification for the country’s export base.