Star Business Report
Foreign investors yesterday urged the government to withdraw the tax imposed on the workers' profit participation fund (WPPF).
“Taxes have been imposed on the WPPF through Finance Act 2015,” said Rupali Chowdhury, president of the Foreign Investors' Chamber of Commerce and Industry.
The WPPF is a fund where workers and management contribute equally for the welfare of the workers.
FICCI has called for the strict implementation of the ceiling on the provident fund contribution. The provident fund contribution ceiling has also been fixed at 8 percent by the labour rule, an alignment of which will be difficult for companies that are already contributing a higher percentage, Chowdhury added.
If the ceiling is not complied with, it can lead to labour unrest as some workers will receive more than others, Chowdhury said at the monthly luncheon meeting of the FICCI at the Westin hotel in Dhaka.
To operate a manufacturing company, a company requires complying with more than 15 laws, including income tax law, VAT law, foreign exchange regulations and labour laws, Chowdhury said.
“FICCI members being compliant with all relevant laws require rearrangement in their operations to ensure conformity with the changed laws,” she said.
Speaking as the chief guest, Mujibul Haque, state minister for labour and employment, said the government has not been allowing trade unions in the services sector considering the foreign investment.
After the Tazreen Fashions fire and Rana Plaza building collapse, the government amended the labour law of 2006 in July 2013, allowing full freedom of association in the factories.
After amendment, trade union registration in the garment sector gained momentum. Training programmes started for the office bearers of the newly formed unions, with technical assistance from the International Labour Organisation, Haque said.
The government also published the rules of the amended labour law in September last year, focusing on worker safety and welfare through a wide range of consultations with the stakeholders, he said.
“It is imperative to mention here that good industrial relations are a prerequisite to development. We need to work together with synergy for productive employment and sustainable development.”
