The Bangladesh Refrigeration and Air Conditioning Merchants Association on Wednesday demanded withdrawal of 60 per cent duty imposed on central air conditioning (VRV/VRF) system in the proposed budget for FY25 and thus reinstate the existing 11 per cent 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.
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 that if the proposed duty was imposed on the central air conditioning system in the country, then the overall duty would increase by 49 per cent 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 that they had already sent letters to the Ministry of Finance and the National Board of Revenue 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 per cent duty had been imposed.
The BRAMA leaders said that the existing 2,10,000 BTU-17.5 tonne single unit central air conditioning systems were being used in various residential buildings, hospitals, commercial buildings and in various government project sites since those were inverter type and energy efficient.
But, the proposed 3,10,000 BTU 25.5 tonne 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 had annual turnover of Tk 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 RMG, agriculture and pharmaceuticals.
