Staff Reporter :
Leaders of the country’s textiles and clothing sector have opposed the proposal of hiking tax at source on export-oriented industries and said that imposition of duty on import of capital machinery, will deter the flourish of their industries.
“Although the finance minister announced some good initiatives to help flourish local industries, the budget is not friendly to textiles sector,” M Atiqul Islam, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told reporters in a post-budget reaction at a press conference on Friday.
The country’s textiles sector’s trade bodies, BGMEA, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA) jointly organised the press conference held at BGMEA headquarters in city.
Expressing concerned over the proposed increase in tax at source on apparel exports, Atiqul Islam, “The proposal has come at a time when the country’s highest foreign currency earning sector has been facing a tough time taking a heat from the recent political turmoil coupled with falling export growth and safety and security issues”.
According to the budget proposal for the next fiscal (2015-2016), which was placed by finance minister AMA Muhith on Thursday at the Parliament, the government proposed 1.0 per cent tax at source on all types of export for the coming FY from 0.30 per cent tax at source.
“Such a jump in tax at source on export-oriented industries like us is completely detrimental to the industry. If such an increase is imposed, the normal progress of the textiles sector will be hampered seriously,” said Atiqul Islam.
Admitting various state facilities on apparel industry, Atiqul Islam said, “We are grateful to the governments for providing such supports. Capitalizing these supports, the industry now turns into the largest export earning sector of the country.
“The sector is contributing a lot to the national economy creating jobs for 3.2 million people mostly whom are women,” he added.
Considering all these contribution of the sector, he also requested the government to pay serious attention to the matter and reconsider the proposal to help the industry maintain growth amid its falling export growth.
“Yes, we are enjoying various state facilities from early 80’s. But we are giving nothing to the national exchequer is not true,” said Tapan Chowdhury, President of BTMA.
Leaders of the country’s textiles and clothing sector have opposed the proposal of hiking tax at source on export-oriented industries and said that imposition of duty on import of capital machinery, will deter the flourish of their industries.
“Although the finance minister announced some good initiatives to help flourish local industries, the budget is not friendly to textiles sector,” M Atiqul Islam, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told reporters in a post-budget reaction at a press conference on Friday.
The country’s textiles sector’s trade bodies, BGMEA, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA) jointly organised the press conference held at BGMEA headquarters in city.
Expressing concerned over the proposed increase in tax at source on apparel exports, Atiqul Islam, “The proposal has come at a time when the country’s highest foreign currency earning sector has been facing a tough time taking a heat from the recent political turmoil coupled with falling export growth and safety and security issues”.
According to the budget proposal for the next fiscal (2015-2016), which was placed by finance minister AMA Muhith on Thursday at the Parliament, the government proposed 1.0 per cent tax at source on all types of export for the coming FY from 0.30 per cent tax at source.
“Such a jump in tax at source on export-oriented industries like us is completely detrimental to the industry. If such an increase is imposed, the normal progress of the textiles sector will be hampered seriously,” said Atiqul Islam.
Admitting various state facilities on apparel industry, Atiqul Islam said, “We are grateful to the governments for providing such supports. Capitalizing these supports, the industry now turns into the largest export earning sector of the country.
“The sector is contributing a lot to the national economy creating jobs for 3.2 million people mostly whom are women,” he added.
Considering all these contribution of the sector, he also requested the government to pay serious attention to the matter and reconsider the proposal to help the industry maintain growth amid its falling export growth.
“Yes, we are enjoying various state facilities from early 80’s. But we are giving nothing to the national exchequer is not true,” said Tapan Chowdhury, President of BTMA.
