COVID-19 jostled the worldwide economy tremendously. The textile industry also fell afoul of the place likewise. Bangladesh is one of the major players in the global apparel and textile industry and it has been facing the same fate till now. But it is time to move on. On 10th March, Bangladesh Textile Mills Association (BTMA) held a meeting with the National Bureau of Revenue (NBR) on the purpose of recovering the current situation.
In the meeting, BTMA wants to enhance alternative cash incentives behind the textile factories from 4 percent to 7 percent for the next 2021-22 fiscal year. Additionally, they urged to cut off the source tax from 0.50 percent to 0.25 percent. They said both of the offered changes are affordable for the troubled mills.
Mohammad Ali Khokon, the president of BTMA told that the textile mills were quite competitive and beneficial until the pandemic with the government provided incentives; though, the rate was low. But after the long event, millers are not more than thriving. An increment in incentives may awaken their hope.
In the 2018-19 fiscal year the source tax was 0.25 percent which was increased to 0.50 percent in the 2019-20 fiscal year. The previous rate is said to be affordable than the running one.
Khokon pointed out two more matters to advocate the demand. One is the aftermath of the LDC graduation. This is going to create new challenges to the sector as the duty benefits will decline. Another is the survival of backward linkage industries of the apparel sector. The negative impact on export is causing that.
Textile millers demanded few more conveniences. Which were:
2% withdrawal of tax on the local cotton purchase.
5% advance import tax revoke on pet chips to reduce the possibility of price increase of yarn
5% value-added tax removal to every kind of fabric made of man-made fiber
lessening the VAT per yard of all kinds of fabric made from any kind of fiber from 4Tk to 3Tk