Home / Knowledge / News / Textiles / BTMA seeks roll back of 1.2% tax at source
BTMA seeks roll back of 1.2% tax at source
Jun '12
Mr. Jahangir Alamin
Mr. Jahangir Alamin
Stating that the increased tax at source could further intensify the liquidity crisis and hinder imports and exports, Bangladesh Textile Mills Association (BTMA), the representative body of primary textile producers in Bangladesh, has urged the Government to roll back the proposal.
In his Budget 2012-13 speech, Finance Minister AMA Muhith proposed increasing tax at source on apparel exports from existing 0.70 percent to 1.2 percent, and reduce five percent tax on cash incentive.
BTMA President Jahangir Alamin said Bangladesh’s garment industry is in danger considering the present domestic as well as international business conditions.
Mr. Alamin said the Budget incorporates some positive proposals like rectifying HS code of polyester staple fibre, exempting rented industry space and domestically procured cotton from Value Added Tax (VAT) and duty-free import of ETP machinery. However, he apprehended that these proposals may fail to deliver any great positive result because of the tax hike proposal.
He added that garment exports are already waning in the wake of global economic slump, and fixing tax at source for all products at 1.2 percent would further impede apparel sector’s export growth.
This may compel garment manufacturers to obtain high interest loans to overcome the adversities arising out of the proposed tax hike, Mr. Alamin said. 
Compared to the prevailing rates, the proposed rise in the tax at source is a 72 percent hike, which is impractical for the export-oriented industry, Mr. Alamin said, and urged the Government to exempt the primary textile sector from tax net.
Further, explaining that income of the exporters is subject to a 15 percent tax, he called on the Government to roll back the levy of 1.2 percent tax at source against each export document.

Fibre2fashion News Desk - India

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Veronique Lee

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Angelina Francesca Cheang

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search