 | Textile, jute sectors demand extended tax holiday
14 March, 2011
Leaders of Bangladesh Textile Manufacturing Association and Bangladesh Jute Mills Association on Sunday demanded extension of tax holiday facility till 2015 and an increased subsidy for textile and jute industries.
Leaders of associations of textile, jute and cotton manufacturers tabled their demands and proposals at a pre-budget meeting with the National Board of Revenue at the NBR head office in the capital presided over by its chairman Nasiruddin Ahmed.
Former adviser to a caretaker government and Square Textiles Ltd managing director Tapan Chowdhury, Federation of Bangladesh Chambers of Commerce and Industry director Abdul Haq, BTMA president Jahangir Alamin, BJMA president Nazmul Haq, Bangladesh Jute Spinners’ Association vice president Shams-uz-Zoha, Bangladesh Textile Dyeing and Printing Industries’ Association Badrul Huda Mashuk, Bangladesh Grey and Finished Fabrics Mills’ and Exporters’ Association president Harun-ur-Rashid, Bangladesh Glitter and Glitter Yarn Manufacturers’ Association president Gazi AZM Shamim, and Silk Manufacturers’ and Exporters’ Association of Bangladesh president Alauddin Ahmad, among others, took part in the meeting.
The BTMA president said, ‘The primary textile sector has been fully utilising the tax holiday since the government provided the facility.’
He also mentioned that ‘This sector has created a large number of jobs, raised the export earnings, and saved a significant amount of valuable foreign currency.’
Jahangir demanded an extension of the tax holiday, scheduled to end in June, till 2015.
The BTMA president also urged the government to extend the cash subsidy enjoyed by the sector, scheduled to end in June, till 2015, besides raising its rate from the current 5 per cent to 15 per cent.
He called on the government to reduce the 15 per cent income tax currently imposed on the sector to 10 per cent.
The BJMA president demanded raising the 10 per cent cash subsidy currently enjoyed by the sector in exporting jute goods to 20 per cent in the next budget.
‘The NBR should not impose a 15 per cent tax on the cash subsidy received by the jute mills as there is no definite directive in the Finance Bill 2010 about whether the subsidy is taxable or not,’ he observed.
BGFMEA president Harun-ur-Rashid demanded duty- and tax-free facility for importing capital machinery and spare parts by cent per cent export-oriented textile industries.
He said, ‘The textile sector is now passing a tough time. It would be more practical if the NBR waived all duties and taxes on imports of capital machinery and spare parts by the industries in the sector.’
The SMEAB president urged the NBR to waive the 15 per cent duty imposed on import of cocoons and cocoons wastage by silk manufacturers.
In response, the NBR chief said, ‘The government will consider the demand of extending tax holiday for the textile and jute sectors as its policy is to liberalise trade for domestic industries.
Release link:http://newagebd.com/newspaper1/business/11486.html
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