Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 1124 Sun. July 29, 2007  
   
Business


Textile leaders demand lifting import duty, VAT from raw materials


Leaders of Bangladesh Textile Mills Association (BTMA) yesterday urged the government to withdraw the recently imposed import duty and VAT from textile raw materials.

They also reiterated their appeal for allowing more time in setting up effluent treatment plants (ETPs).

"Imposition of 10 percent duty and 15 per cent VAT on import of textile raw materials in the current budget will certainly jeopardise the country's textile industry which directly employs some 45 lakh workers", BTMA President Abdul Hai Sarker told a group of journalists in Gazipur yesterday.

The BTMA arranged a daylong visit to a few top textile units for a delegation that included journalists, textile professionals, trainers as well as government officials.

The latest price hike of raw materials in the international market has already reduced our competitiveness as a textile exporting country, the BTMA top official added.

Import of the items that are manufactured by local industries should be discouraged for the sake of protecting those from uneven competition and for that purpose imposition of import duty on those items is solicited, Sarker said, adding that import of the raw materials needed for supporting the ready made garment (RMG) industry cannot be interrupted through imposing taxes.

Imposition of such duties directly affects exports, which would eventually lead to an unwanted crisis of foreign exchange reserves, he said.

Emphasising exploration of new apparel markets, the BTMA chief said although Bangladesh's economy is largely depended on the RMG industry, which fetches approximately US$8 billion per annum, the country's share in the global RMG market is only 2.5 percent when its (global market) size is US$ 450 billion.

He also sought proper government support and adoption of new technology for flourishing the RMG sector.

On the plea of extending time for setting up ETPs, Sarker said the current monsoon season is unfriendly to constructing such expensive plants.

He also suggested setting up of centralised ETPs by the government, which, according to him, would help factory owners a lot in reducing maintenance costs.

"The government can easily acquire land to set up specialised industrial areas where ETP projects are easy to implement. If so, the existing factories as well as new entrepreneurs will feel encouraged to invest more in this sector", he elaborated.

Earlier in May this year, the government rejected the BTMA's appeal to extend the deadline for setting up the ETPs, which are essential for a pollution-free environment.

Sarker, however, appreciated the government's role in creating a better business atmosphere by combating corruption.

The factories' quick adoption of the state-of-the-art technology and compliant facilities were briefed to the visiting team.

BTMA Secretary General Towfique Hasan was also present during the field trip.