Bangladesh Textile Mills Association (BTMA) on Saturday hailed the proposed budget for the fiscal year 2014-15, terming it pro-people and investment friendly.
In a statement, BTMA said, government in its proposed budget has given special emphasis on the industry, which will help the textile sector grow steadily.
The textile sector will be benefited from the budgetary measures and it will help enhance export from the sector, added the statement
The finance minister has proposed reduction of tax at source and withdrawal of duty for the imports of prefabricated building materials and safety equipment as the textile and clothing industry struggles to meet global retailers’ standard.
The minister has proposed the reduction of tax at source from 0.80 per cent to 0.30 per cent for the garment exports while proposed to reduce it to 0.60 per cent for all other exports. “To encourage the export sector, I propose to reduce the rate of tax at source on Cash Incentive from five per cent to three per cent,” the minister said in his budget speech.
Duty will also be waived in case of imports of fire-resistant door, emergency light, and sprinkler system to ensure internal security and compliance of standard in ready-made garment sector.
BTMA praised the proposed budget for the fiscal year 2014-15 for continuation of the existing facilities of the industry. The Association, however, demanded keeping the textile sector out of 0.03 per cent tax at source.
“The owners of textile mills pay tax on the year basis. The decision of 0.30 per cent minimum tax is totally illogical. So, the government should withdraw the tax proposal,” said the press statement signed by BTMA Chairman Md Afzal Hossain. BTMA in its budget reaction also demanded exemption of value added tax (VAT) and import duty on dyeing chemicals, saying that tax on chemicals is zero in other textile-manufacturing countries.
It, however, appreciated the exemption of import duty on cotton waste for the terry towel industry.
Moreover, the trade body proposed to withdraw the income tax at source during the buying goods through local L/C under the Clause of 52 of Income Tax Ordinance 1984.
It also proposed to withdraw tax on Pet Chips, Synthetic Filament Tow, Lyocell and Flux Fibre.
