One and a half percent tax increase in the export sector as the textile and clothing sector will be challenged. Expresses concern at the Bangladesh Textile Mills Association (BTMA). The organization thinks, 150 percent of the investment will be hampered as a result of tax increases. So they come up with a reasonable level of tax has requested the prime minister and the minister of finance. BTMA responded proposed national budget for the next financial year 2016-17.
Former caretaker government adviser Tapan Chowdhury and signed by the president of the organization in a press release yesterday stating textile mill owners’ response to the budget of the organization. BTMA said,’’ The past in September, the government doubled the price of gas.’’ The gas fired captive power generation of the generator yarn and cloth factory sector fell in intense competition. Over the years, the textile sector is the recession. Compared to the value of the investment is reasonable.
In all, the textile sector, export-oriented factories of yarn and fabrics earn a profit 3-5 percent. The state budget for the next financial year represented 0.60 per cent withholding tax rate has been increased from one and a half percent. This is the end if the factories will remain a weak financial structure. As well as being contracted to develop capital investment will not have a chance. As a result, employment is interrupted BTMA seems to happen. The proposed budget for an increase in investment in infrastructure, electricity and some of the steps taken to solve the energy problem, the Prime Minister, and Finance Minister AMA Muhith welcomed BTMA.
The organization believes that raw flax fiber and textile sector due to the diversification in order to reduce the import duty will be spandex. The budget for the value added tax (VAT) law implementation be deferred for one year, continued incentives for the export sector, gray cloth dyeing-printing-finishing sector, the VAT exemption and has welcomed a decision to withdraw the provisions of the minimum tax in Bangladesh Textile Mills Association. BTMA claimed the cancellation of the tax, the pre-budget consultations provided by the local bond bill to pay 3 percent. The proposed budget did not change the subject. The group’s statement, textile raw materials sector, local factories have to spend millions to buy other goods. The 3 percent tax is to be reduced if the factory is working capital. Therefore, the purchase of products through the 3 per cent tax withheld at source, local bond provision need to be withdrawn.
Reported by-
Roman Ahmed
Reporter of Textile Tribune
Email: romanahmed143@gmail.com
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