4:41 pm, Thursday, 14 November 2024

Bangladesh’s toy makers demand duty cut on spare import 

Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) on Tuesday demanded duty cut on a number of components used in toy manufacturing saying the high import duty is holding back the growth of the potential sub-sector.

It said despite having duty free market access, quality goods, low labor cost, Bangladesh couldn’t grab the global market of toys and seize a notable share of china shift mainly because of absence of required policy supports.

“In absence of a strong backward linkage accessories industry, the toy sub-sector is fully dependent on imported components,” Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) president Shamim Ahmed said.

Local toy industry meets the majority or 80 per cent of the domestic demand while Bangladesh just a decade back was largely dependent on imports to meet its demand for toys, he said while talking to a group of reporters at the association office in the city.

The BPGMEA president said national board of revenue had already reduced the duty on some 10 components.

The government should reduce the high duty on rest 24 items including rubber, plastic sheet, PVC washer, metal sheet, metal stick, mini motor he said demanding to reduce the rate to 5.0 per cent to help the local backward industry to develop.

“Cheap labour and large workforce are among the major strengths of the industry,” he said adding Bangladesh has huge potential to double its toy export earnings and creates additional employment if they receive the required support.

“China though the main player of global toy market is shifting to hign-tech industries due to its high labour cost and it creates an opportunity to raise the country’s foothold in the global market,” BPGMEA president said.

According to the BPGMEA, some 137 manufacturers, located mostly in export processing zones, economic zones, Keraniganj, Gazipur and Old Dhaka, are meeting the majority of local demand.

Mr Ahmed said a toy maker said some 30 to 40 components or parts are required a toy and they have to pay 25 per cent to 89 per cent duty on importing those raw materials.

According to BPGMEA, the local toy market is estimated at Tk 70 billion.

The global toy market is projected to reach more than US$110 billion by 2026 as household income and the people’s purchasing power are rising.

In the fiscal year (FY) 2016-17, the country fetched $15.23 million from toy exports which stood at $44.52 million in FY 2021-22, according to the Export Promotion Bureau (EPB) data.

Tricycles, scooters, pedal cars and similar wheeled toys, and dolls are the most exported items – shipped to mostly Spain, Italy, France, Japan, USA, UK and Germany, EPB data showed.

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Bangladesh’s toy makers demand duty cut on spare import 

Update Time : 11:52:46 pm, Tuesday, 7 May 2024

Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) on Tuesday demanded duty cut on a number of components used in toy manufacturing saying the high import duty is holding back the growth of the potential sub-sector.

It said despite having duty free market access, quality goods, low labor cost, Bangladesh couldn’t grab the global market of toys and seize a notable share of china shift mainly because of absence of required policy supports.

“In absence of a strong backward linkage accessories industry, the toy sub-sector is fully dependent on imported components,” Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) president Shamim Ahmed said.

Local toy industry meets the majority or 80 per cent of the domestic demand while Bangladesh just a decade back was largely dependent on imports to meet its demand for toys, he said while talking to a group of reporters at the association office in the city.

The BPGMEA president said national board of revenue had already reduced the duty on some 10 components.

The government should reduce the high duty on rest 24 items including rubber, plastic sheet, PVC washer, metal sheet, metal stick, mini motor he said demanding to reduce the rate to 5.0 per cent to help the local backward industry to develop.

“Cheap labour and large workforce are among the major strengths of the industry,” he said adding Bangladesh has huge potential to double its toy export earnings and creates additional employment if they receive the required support.

“China though the main player of global toy market is shifting to hign-tech industries due to its high labour cost and it creates an opportunity to raise the country’s foothold in the global market,” BPGMEA president said.

According to the BPGMEA, some 137 manufacturers, located mostly in export processing zones, economic zones, Keraniganj, Gazipur and Old Dhaka, are meeting the majority of local demand.

Mr Ahmed said a toy maker said some 30 to 40 components or parts are required a toy and they have to pay 25 per cent to 89 per cent duty on importing those raw materials.

According to BPGMEA, the local toy market is estimated at Tk 70 billion.

The global toy market is projected to reach more than US$110 billion by 2026 as household income and the people’s purchasing power are rising.

In the fiscal year (FY) 2016-17, the country fetched $15.23 million from toy exports which stood at $44.52 million in FY 2021-22, according to the Export Promotion Bureau (EPB) data.

Tricycles, scooters, pedal cars and similar wheeled toys, and dolls are the most exported items – shipped to mostly Spain, Italy, France, Japan, USA, UK and Germany, EPB data showed.