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Search date: 05-05-2018 Return to current date: Click here

Private jute millers seek waiver of source tax

FE Report | May 05, 2018 00:00:00

Private jute millers have sought waiver of source tax on export earnings in the upcoming national budget for 2018-19 fiscal year (FY).

They said earnings from this sector have declined significantly since the Indian government imposed anti-dumping duty on imports of jute goods from Bangladesh.

Besides, the demand for this eco-friendly item in the Middle East has shrunk because of political unrest there, they added.

Under this circumstance, jute goods exporters are passing a hard time, Bangladesh Jute Mills Association (BJMA) said in its budget proposal placed to the National Board of Revenue (NBR) recently, urging the government to withdraw the source tax on export earnings considering the present situation.

At present, 0.60 per cent source tax is being deducted on jute goods exports earnings, according to the BJMA.

BJMA also said the government now realises 3.0 per cent income tax (IT) on cash subsidy which is irrational.

It demanded withdrawal of tax on cash incentives.

The apex body of private jute millers also sought exemption from VAT on different stages, including shipment and transportation, as the jute goods are hundred per cent value-added products and 0.4 million people are engaged in this sector.

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