 | Garment accessories makers oppose plan to hike tax
19 June, 2011
Garment accessories makers yesterday urged the government to fix tax at source at 0.25 percent instead of increasing it by three-fold.
“We will be able to contribute more to the economy than the government hopes to earn by imposing the tax three times the present rate,” said Rafez Alam Chowdhury, president of Bangladesh Corrugated Carton Accessories Manufacturers and Exporters Association, at a press conference in the city.
Finance Minister AMA Muhith has proposed 1.5 percent tax at source for export-oriented industries for fiscal 2011-2012, up from 0.50 percent in the outgoing fiscal year.
The association represents over 1,000 members that produce export-oriented garment accessories and packaging products. Its sectors include polybag, button, zipper, hanger, elastic, carton, neckboard, backboard, swingthread and embroidery.
Bangladesh fully relied on imports of accessories even two decades ago to feed its growing garment industry. But the sector has helped the country become a self-sufficient in backward linkage in garment accessories.
The sector fetched $1.8 billion in direct and indirect exports in last fiscal year. Its contribution to the total garment exports could reach $2.7 billion in the current fiscal year of 2010-2011, according to the association.
“We have so far met the domestic demand only, but following hike in production cost in China, we see more opportunities for us in the international arena,” Chowdhury said.
He said the sector could contribute more to the national economy if the government extends policy support. “The cost of production has gone up due to soaring raw material inflation, high interest rates and inadequate supply gas and electricity.”
“The tax at source has been increased at a time when the whole industry is struggling to remain in the business,” he said, urging the government to cut the tax by half from the existing 0.5 percent rate.
Release link:http://www.thedailystar.net/newDesign/news-details.php?nid=190558
|
|
|
