The Bangladesh Textile Mills Association on Sunday said that the proposed national budget for the financial year 2021-22 would not be conducive to the country’s primary textile sector as the proposals put forward by the trade body were not considered.
BTMA president Mohammad Ali Khokon at a press conference held at the office of the trade body in the city said that their demand of setting value-added tax at the rate of Tk 3 for a kilogram of yarn, VAT exemption on fabric made by manmade fibre and duty-free import of all types of fibres were not addressed in the proposed budget that could hamper the growth of deemed export.
He said that the support measures for the apparel and textile sector in the proposed budget were insufficient and it might hamper the initiative of the government of promoting ‘Made in Bangladesh’.
Khokon demanded reducing the tax at source to 0.25 per cent from 0.50 per cent and rearranging the tariff value for woven fabrics by the Bangladesh Trade Tariff Commission.
He also urged the government to allow import of the spares of textile machinery with 1 per cent duty and to allow duty-free import of all types of fibres.
Demanding VAT exemption on fabrics made of MMF, the BTMA president said that the government should provide the support for the diversification of products as the global share of MMF-based products was increasing.
The Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association said that the sector was deprived again in the proposed budget as it had been past.
As the 100 per cent export-oriented sector, the BGAPMEA demanded reducing corporate tax to 15 per cent for the sector and 12 per cent for the green factories.
Md Abdul Kader Khan, president of the BGAPMEA, in a press release on Sunday demanded that the government should reduce source tax to 0.24 per cent from 0.50 per cent as the pandemic affected the sector badly.
He also demanded 1 per cent cash incentive against the export of garment accessories to remain competitive on the global market amid the Covid-19 outbreak.
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