Bangladesh Textile Mills Affiliation (BTMA) leaders have urged the federal government to scale back the revenue tax fee from 15 per cent to 12.5 per cent until 2028. In addition, they urged the federal government to incorporate yarn and cloth as VAT exempted gadgets because the sale of native yarn and cloth has declined drastically BTMA leaders mentioned the enterprise of native millers have been broken as a consequence of misuse of bonded warehouse services.
They mentioned yarn, cloth and different dress-making supplies are being imported beneath mis-declaration and duty-free services. The sale of material and native yarn has lowered drastically and 50-60 per cent of the looms have been remained closed for a protracted time frame. Round 50-60 thousand energy looms have been shut down up to now out of 1 lakh, mentioned BTMA chief. It’s apprehended that extra native mills prone to be shut down as a consequence of lack of the latest work orders, BTMA leaders mentioned this to the reporters at a resort within the capital yesterday.
Mohammad Ali Khokon, president of Bangladesh Textile Mills Affiliation (BTMA), mentioned that native weaving and spinning mills are shutting as they aren’t getting correct costs of yarn and cloth and counting losses. The imported gadgets are coming beneath mis-declaration and duty-free services which have already flooded out there, inflicting menace to the native mills, he added. In our spinning mills, solely 80 lakh spindles are operating out of 1 crore 10 lakhs, mentioned BTMA chief.
Woven dying mills have lowered their capability beneath 40 per cent whereas export-oriented spinning mills are pressured to promote their merchandise at a decrease fee in comparison with their manufacturing value leading to large stockpiling of yarn and cloth, the famous.“If the scenario prolongs, factories could also be unable to pay wages and compelled to shut down as a consequence of liquidity disaster,” he mentioned.
The BTMA chief mentioned that over eight to 10 lakh items of attire, together with sari, three items and different shirting garments, have been getting into Bangladesh illegally by 17 border markets and the gadgets have been being taken to Dhaka metropolis by railway. BTMA leaders additionally demanded the money incentives to 15 per cent from current four.zero per cent, robust monitoring to cease import beneath mis-declaration and misuse of the bonded warehouse services.“We’re not towards ‘import’ however we wish stage taking part in area in order that merchandise cannot enter illegally contained in the nation,” mentioned BTMA chief.
The BTMA urged the federal government to launch a drive within the textile producing areas to forestall gross sales of illegally imported yearns and materials and to make sure correct administration of bonded warehouses. BTMA President Mohammad Ali Khokon, vice-presidents Alamgir Shamsul Alamin, Abdullah Al Mamun, have been current on the assembly.