Interviews
Silk units may lose sheen after VAT implication
26 Jun '08
2 min read
The members of Bangladesh Resham Shilpa Malik Samity (BRSMS), a body to protect the silk industry, recently held a conference, to bring in focus, the miserable plight of the sector.
According to Mohammed Merajul Alam, President, BRSMS, if the Government fails to provide a helping hand to the domestic silk industry it will soon collapse. Association members showed their displeasure against the decision made by higher authorities of imposing 15 percent VAT on importing silk yarn.
Experts belonging to this sector suggest that, if VAT is not withdrawn the mill owners will have no other option but close the operations. This in turn will increase unemployment ratio as presently, nearly 10 lakh women are working in silk manufacturing units to earn their living.
Bangladesh produces nearly 50 tons of silk yarn yearly, while the domestic demand is of 300 tons. In order to meet the requirement, the manufacturers have to import the raw material from different nations.
Previously the price for one kilogram of yarn was Tk 2400 and if the VAT is imposed the cost will shoot up to Tk 3000.
BRSMS is now planning to put forward a memorandum in front of Mirza Azizul Islam, Finance and Planning Adviser by the end of this month asking him to remove VAT, on silk yarn imports.
According to Mohammed Merajul Alam, President, BRSMS, if the Government fails to provide a helping hand to the domestic silk industry it will soon collapse. Association members showed their displeasure against the decision made by higher authorities of imposing 15 percent VAT on importing silk yarn.
Experts belonging to this sector suggest that, if VAT is not withdrawn the mill owners will have no other option but close the operations. This in turn will increase unemployment ratio as presently, nearly 10 lakh women are working in silk manufacturing units to earn their living.
Bangladesh produces nearly 50 tons of silk yarn yearly, while the domestic demand is of 300 tons. In order to meet the requirement, the manufacturers have to import the raw material from different nations.
Previously the price for one kilogram of yarn was Tk 2400 and if the VAT is imposed the cost will shoot up to Tk 3000.
BRSMS is now planning to put forward a memorandum in front of Mirza Azizul Islam, Finance and Planning Adviser by the end of this month asking him to remove VAT, on silk yarn imports.
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
