Silk industry seeks budgetary support

The Bangladesh Resham Shilpa Malik Samity (BRSMS), the association of silk industry owners, yesterday sought budgetary allocation for silk industry.
The association said the local silk industry will not survive unless the government gives special priority to it.
Speaking at a press briefing in Rajshahi, Mohammed Merajul Alam, president of BRSMS, criticised the government decision to impose 15 percent VAT on the import of silk yarn.
The silk industry owners will have to stop operations if the government imposes the 15 percent VAT on import yarn, the BRSMS leaders said.
The country produces 50 silk tonnes of yarn while the demand for the product is 300 tonnes.
To fulfill the deficit, the government formed rules and regulations and declared the industry as an agro-based industry in 2005, the leaders added.
“The government should also consider the implications that the VAT will have on the employment of the 10 lakh women who are currently involved with this industry. They may become jobless if factories shut down,” said a leader of the association.
Earlier, one kilogram of yarn cost Tk 2400. Is the VAT is imposed, the price of the same quantity will rise to Tk 3000.
The BRSMS will submit a memorandum to Finance and Planning Adviser Mirza Azizul Islam June 30 requesting him to withdraw the VAT.
BRSMS Vice President Taharul Islam and General Secretary Abu Bakker Siddik also addressed the conference.