Home / Knowledge / News / Textiles / BTMA seeks roll back of 1.2% tax at source
BTMA seeks roll back of 1.2% tax at source
19
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

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search