Textile millers ask for zero export tax | The Daily Star
12:00 AM, June 17, 2012 / LAST MODIFIED: 12:00 AM, June 17, 2012

Textile millers ask for zero export tax

Textile millers yesterday urged the government to withdraw tax at source on exports of all products.
The demand comes on the back of deteriorating figures of country's garment exports over the past several months due to global economic crisis.
“This is not the right time to increase the tax at source of exportable products, which will only put a liquidity pressure on export-oriented enterprises. We actually do not want any tax on exports,” said Jahangir Alamin, president of Bangladesh Textile Mills Association (BTMA), at a press conference on the proposed budget for 2012-13.
Finance Minister AMA Muhith proposed raising tax at source to 1.2 percent from the 0.5 percent currently enjoyed by the garments sector.
Exports fell by 8 percent during the July-May period of the current fiscal year from 42 percent in the corresponding period last fiscal year.
The millers also said the higher bank borrowing by the government will create a liquidity crunch in the banking system, which will ultimately put pressure on private investment.
The BTMA boss also urged the government to not tax the 5 percent cash incentives bestowed to the millers, which they feel is assistance from the government and hence not taxable income.
The millers, however, welcomed the pro-posal of duty reduction on import of effluent treatment plant (ETP) materials and zero duty on import of capital machinery.
He cited three reasons -- liquidity crisis in banking system, higher bank interest rate and weak infrastructures -- for the poor investment scenario in the country.
He suggested the government increase power generation so that the mills can operate in full capacity, to facilitate meeting the targeted 7.2 percent GDP growth.

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