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Govt to consider reducing duties for cold chain equipment: Salman

BI Desk || BusinessInsider

Published: 00:10, 29 February 2024  
Govt to consider reducing duties for cold chain equipment: Salman

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Prime Minister's Private Industry and Investment Adviser Salman F Rahman today said the government will consider taking necessary initiatives to reduce advance income tax (AIT), value added tax (VAT) tax deducted at source (TDS) and convenient duty for cold chain equipment.

“Logistics is high-priority sector in the Industrial Policy. Cold Chain is being given much emphasis in the upcoming National Logistics Policy. I am confident that these will deliver the necessary incentives to invest in cold chain, for further penetrating into the regulated markets for agro and fish products like the USA, EU and Japan,” he said, reports BSS.

Salman said this while speaking as the chief guest at the opening session of a day-long conference titled ‘Cold Chain Investment Conference 2024’ at BIDA Multipurpose Hall in Biniyog Bhaban, Agargaon in the city.

The Bangladesh Investment Development Authority (BIDA) and the U.S. Department of Agriculture Bangladesh Trade Facilitation project (BTF) organized the conference.

BIDA Executive Chairman Lokman Hossain Miah, Secretary of the Ministry of Fisheries and Livestock Md Selim Uddin and President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Mahbubul Alam, among others, spoke on the occasion.

In his speech, Salman said as cold chain equipment is mostly imported, there is a good opportunity for foreign and local businesses to explore joint venture opportunities to domestically manufacture these products.

“We also look forward to making way for 100 percent foreign owned projects in this sector. I believe Bangladesh has the right skills for this sector,” he added.

By combining the efforts of the government, the private sector and development partners, Salman said Bangladesh can create a robust cold chain supply chain that not only supports domestic needs but also enhances the country's competitiveness in the global market.

By 2031, he said, temperature-controlled logistic services in Bangladesh including storage, transportation, and value-added services like grading, labeling, and packaging, are expected to have a combined market value of US$ 440 million.

As a result, the demand for cold chain services in Bangladesh will increase by an estimated 11 percent compounded growth rate, he added.

He said consumers in and outside Bangladesh are shifting their focus on supporting supply chains that ensure sustainability and delivery of products in optimal conditions.

So, businesses, along with their financiers, have to think about how to plan ahead and integrate new technology in their supply chain in order to retain and capture both domestic and export markets, he added.

At the conference, a panel discussion titled ‘Ensuring Access to Finance and Conducive Policies to attract TCL Investment in Bangladesh’ was held.