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Business Insider Bangladesh

BRAMA calls for withdrawing 60% duty on central air conditioning system

BI Desk || BusinessInsider

Published: 00:55, 13 June 2024  
BRAMA calls for withdrawing 60% duty on central air conditioning system

Photo: Collected

The Bangladesh Refrigeration and Air Conditioning Merchants Association (BRAMA) on Wednesday demanded withdrawal of 60 percent duty imposed on the central air conditioning (VRV/VRF) system in the proposed budget for FY25 and thus reinstate the existing 11 percent duty.

In this regard, the association leaders urged for keeping in force the HS Code 8415.10.10 instead of the proposed HS Code 8415.10.20 in order to promote state-of-the art technology enriched power saving inverter type, space saving and environment-friendly central air conditioning system which are being used in various public and private infrastructures of the country.

BRAMA president Mohammad Asaduzzaman made the demands at a press conference held at a city hotel in Dhaka, reports BSS.

Former BRAMA president Mohammad Abul Hossain, BRAMA director Mohammad Abu Sayeed (Babul), Md Nahid Murad of Techno Cool Associates, Edison Electronics Director (Operations) Ali Rayhan and Md Akram Hossain (Boby) spoke, among others, at the press conference.

Asaduzzaman said if the proposed duty is imposed on the central air conditioning system in the country, then the overall duty would increase by 49 percent leading the businesses in this sector to suffer from huge losses.

Besides, the fresh investments in this sector would be disinterested while the flourish of this sector would be hindered.

The BRAMA president said they have already sent letters to the Ministry of Finance and the National Board of Revenue (NBR) centering their concerns over the issue.

He alleged that although the NBR had assured them of not imposing any fresh duty on the central air conditioning system, but it was not reflected in the proposed budget as 60 percent duty has been imposed.

The BRAMA leaders said that the existing 2,10,000 BTU-17.5 ton single unit central air conditioning systems are being used in various residential buildings, hospitals, commercial buildings and in various government project sites since those are inverter type and energy efficient.

But, the proposed 3,10,000 BTU 25.5 ton single unit central air conditioning system in various infrastructures would consume huge electricity, emit more carbon and those would not be viable in the long-run, they added.

Answering to a question, the BRAMA president said that the sector has annual turnover of Taka 2,000 crore in the country and they import such central air conditioning system from global renowned brands like DAIKIN, Panasonic, Mitsubishi, Hitachi and Toshiba.

He also mentioned that the proposed higher duty structure in the central air conditioning system would impact almost all the sectors including the RMG, agriculture and pharmaceuticals.

Walton