Three trade bodies call to withdraw import duty on textile machinery
Tuesday, 12 June 2007
FE Report
Three trade bodies on textile sector have urged the government to withdraw the proposed 10 per cent import duty on textile capital machinery in the budget for fiscal 2007-08.
In post-budget reactions Monday, the Bangladesh Textile Mills Association (BTMA), Bangladesh Terry Towel & Linen Manufacturers' and Exporters' Association and Bangladesh Grey & Finished Fabrics Mills & Exporters Association said the abolition of zero import duty on the textile machinery will hinder the growth of the sector, a major contributor to the Bangladesh economy.
The trade bodies, however, hailed the finance adviser for emphasising on export product diversification, creation of employment opportunity to alleviate poverty, control of inflation and stability of price, making individual sector more dynamic and increase competitiveness.
"But we feel the imposition of 10 per cent duty on import of textile machinery and raw-materials may create hindrance in the process of industrialisation and creation of employment opportunity," BTMA vice president Jahangir Alamin said in a statement.
Due to imposition of tax on textile capital machinery, the project cost will increase and discourage potential investors resulting in the fall of investment, the statement said.
In a statement, Bangladesh Frozen Foods Exporters Association (BFFEA) has requested the government to withdraw turnover tax and reduce tax on the exports from 0.25 per cent to 0.10 per cent, proposed to be imposed in the upcoming fiscal.
The BFFEA leaders made this plea in a budget discussion meeting Saturday to sustain in the competitive international market.
They also demanded clarification on imposition of tax on exports, which has created confusion among the frozen foods exporters.
The BFFEA members said tax on all exports should be reduced to 0.10 per cent to help the expanding sector compete with the international market.
They also recommended allocation of Tk 2.0 billion as matching grant for the shrimp farmers to introduce modern technology for more production of shrimp and Tk 200 million for training and welfare of the shrimp workers.
The meeting was chaired by Kazi Belayet Hossain, president of the association while senior vice president Maksudur Rahman, vice presidents Mahmudul Hassan and Sk Md. Abdul Baki, among others, attended the meeting.
Under the current budget proposal, import duty and VAT have been imposed on Viscose and Polyester Staple Fibre.
The BTMA said Viscose & Polyester Staple Fibre (PSF) are currently used as one of the major raw-materials in textile industry. Recently half of the exportable apparels are made of those raw materials. Taking the potential of the items, spinning mills in Bangladesh have brought in changes in their production process so as to manufacture yarn at more competitive cost and supply the same to export-oriented RMG units.
Under the current budget proposal, 15 per cent VAT has been imposed on Acrylic Staple Fibre. For the last few years, there has been a significant expansion of sweater industry in Bangladesh, it added.
Three trade bodies on textile sector have urged the government to withdraw the proposed 10 per cent import duty on textile capital machinery in the budget for fiscal 2007-08.
In post-budget reactions Monday, the Bangladesh Textile Mills Association (BTMA), Bangladesh Terry Towel & Linen Manufacturers' and Exporters' Association and Bangladesh Grey & Finished Fabrics Mills & Exporters Association said the abolition of zero import duty on the textile machinery will hinder the growth of the sector, a major contributor to the Bangladesh economy.
The trade bodies, however, hailed the finance adviser for emphasising on export product diversification, creation of employment opportunity to alleviate poverty, control of inflation and stability of price, making individual sector more dynamic and increase competitiveness.
"But we feel the imposition of 10 per cent duty on import of textile machinery and raw-materials may create hindrance in the process of industrialisation and creation of employment opportunity," BTMA vice president Jahangir Alamin said in a statement.
Due to imposition of tax on textile capital machinery, the project cost will increase and discourage potential investors resulting in the fall of investment, the statement said.
In a statement, Bangladesh Frozen Foods Exporters Association (BFFEA) has requested the government to withdraw turnover tax and reduce tax on the exports from 0.25 per cent to 0.10 per cent, proposed to be imposed in the upcoming fiscal.
The BFFEA leaders made this plea in a budget discussion meeting Saturday to sustain in the competitive international market.
They also demanded clarification on imposition of tax on exports, which has created confusion among the frozen foods exporters.
The BFFEA members said tax on all exports should be reduced to 0.10 per cent to help the expanding sector compete with the international market.
They also recommended allocation of Tk 2.0 billion as matching grant for the shrimp farmers to introduce modern technology for more production of shrimp and Tk 200 million for training and welfare of the shrimp workers.
The meeting was chaired by Kazi Belayet Hossain, president of the association while senior vice president Maksudur Rahman, vice presidents Mahmudul Hassan and Sk Md. Abdul Baki, among others, attended the meeting.
Under the current budget proposal, import duty and VAT have been imposed on Viscose and Polyester Staple Fibre.
The BTMA said Viscose & Polyester Staple Fibre (PSF) are currently used as one of the major raw-materials in textile industry. Recently half of the exportable apparels are made of those raw materials. Taking the potential of the items, spinning mills in Bangladesh have brought in changes in their production process so as to manufacture yarn at more competitive cost and supply the same to export-oriented RMG units.
Under the current budget proposal, 15 per cent VAT has been imposed on Acrylic Staple Fibre. For the last few years, there has been a significant expansion of sweater industry in Bangladesh, it added.