Bangladesh's finance adviser to the army-backed interim government on Thursday turned down a proposal to withdraw duties on raw materials, arguing that local manufacturers need to be more competitive in the age of the free market economy.
The budget effective from July 1 proposed to raise import duty on some 1,600 capital machinery including textile sector and raw materials to 10 percent from 5 percent and also on intermediary products to 15 percent from earlier 12 percent.
"We can not continue to enjoy protection facilities for an indefinite period in the changed world since it has a negative impact on the economy," Mirza Azizul Islam, finance adviser, told reporters.
Bangladesh's interim government early this month unveiled an 871.37 billion taka ($12.6 billion) annual budget for fiscal 2007/08, to augment overall economic growth and create more jobs for poverty alleviation.
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