Jute millers want source tax waiver

The country's jute millers sought waiver of source tax on raw jute at purchase level as such a measure affects farmers and jute millers.

They also demanded exemption of source tax on export subsidy.

Currently, the government deduct 2.0 per cent tax at source on raw jute purchase, and 10 per cent on cash incentive from export earnings.

The Bangladesh Jute Mills Association (BJMA) on Tuesday placed their demands through a letter at the Prime Minister's Office, saying that jute is the pride of Bangladesh. It contributes to export basket and protects environment through meeting local demand of the products. If the sector does not get necessary fiscal supports, it will fail to flourish further and miss the target of export earnings.

Abdul Barik Khan, secretary general of the BJMA, said because of the 2.0 per cent source tax, farmers were being deprived of due prices of their products. For this reason, they can lose interests in cultivating jute.

He also said currently, 10 per cent source tax is imposed on cash subsidy, which is not rational for the jute sector - considering its present ailing condition.

The BJMA also made demands, including implementing mandatory jute packaging law to increase local sales of the eco-friendly goods.

Currently, the sector is enjoying up to 20 per cent cash incentive on export earnings. The millers requested to increase the subsidy to 25 per cent.

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