Jute goods exporters seek cut in AIT

Country's jute goods exporters have sought reduction of Advance Income Tax (AIT) on export bill of jute products so that the sector can survive, sources said.
Bangladesh Jute Goods Exporters Association (BJGEA) last month requested the commerce ministry to take necessary steps in this regard.
Currently, the government has imposed 1.0 per cent AIT on export bills of jute goods.
Earlier, it was 0.50 per cent and they sought the AIT cut to the earlier 0.5 per cent.
The government imposed 2 per cent tax at source on purchasing raw jute. Again, it is considering imposing tax at source on export purchase orders.
If imposed, the tax would not only hamper the sector's growth but also the sector would be close to ruin, a source said.
They apprehend that the prices of jute products will increase in the international market and the export of jute goods will decline, said the association in a letter.
They requested the government to include the name of BJGEA members in export registration form (EXP form).
According to a central bank circular, jute yarn, hessian and diversified jute goods exporters get 7.0 per cent, 12 per cent and 20 per cent cash incentives respectively.
India, Pakistan and China are the major importers of Bangladeshi raw jute. The country exports 0.6 to 0.8 million bales of raw jute each year.
Bangladesh earned Tk 6.59 billion from raw jute export in the fiscal year (FY) 2021-22. About 7.0 to 8.0 million bales of raw jute are produced every year locally.
"We have received the letter from BJGEA and working on the issue," an official of the commerce ministry said.

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