Hailing the proposed budget for the next fiscal year (FY), the country's textile sector apex body urged the government to withdraw the minimum tax imposed and keep cash incentives outside the purview of any tax, apart from review of other measures.
In its budget reaction the Bangladesh Textile Mills Association (BTMA) said it was not logical to impose 0.30 per cent minimum tax on textile mills as the income tax of the sector is assessed at the year end.
"It would rather make the income tax payment process complicated," the BTMA said in a statement issued Friday. It disagreed with the budget proposal reducing the tax at source on any local L/C involving more than Tk 0.5 million from 5.0 per cent to 3.0 per cent. The statement said the proposed measure would weaken the financial competence of big industries.
The textile mills import cotton, yarn, fabrics and other raw materials, the value of which goes beyond the billion-taka mark.
The proposal to reduce the rate of tax at source would not bring any good result for the sector, it explained requesting the finance minister to keep the textile sector outside the purview of this provision.
Appreciating the government's proposal to continue the allocation for providing incentives and bring some sectors under its purview, the BTMA requested the government to keep the cash incentive support outside any tax measure.
"In reality, the export sectors are supposed to get the cash incentive of 5.0 per cent, but they do not get more than 3.75 per cent," it added.
The BTMA termed the proposed cut in duty on staple fibre and flux fibre 'positive.' But the textile apex body requested the finance minister to withdraw all kinds of tax and duty on Pet Chips, Synthetic Filament Tow/ Acrylic tow, Lyocell Fibre and Flux Fibre.
BTMA call to lift min tax, keep incentives tax-free
FE Report | Published: June 07, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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