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BTMA for keeping existing 15% income tax

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The apex trade body will seek for withdrawing tax at source for spinning, weaving, dying, printing and finishing mills 

Bangladesh Textiles Mills Association (BTMA) will urge the government for keeping the existing 15% income tax on profits in the upcoming budget for the fiscal 2014-15.

The apex trade body will also seek for withdrawing tax at source for spinning, weaving, dying, printing and finishing mills as it plans to place its proposal to the National Bureau of Revenue (NBR) during a pre-budget discussion with NBR, to be held shortly, according to a proposal prepared by BTMA.

BTMA officials are also going to press its demand for tax cut at source in case of trading cottons through local letter of credits (LCs), as it has increasedthe yarn prices.

According to income tax ordinance of 1984, textile mills have to pay 1% tax at source for trading cotton through local LCs up to Tk5 lakh, while 2.5% for trading worth in between Tk5 lakh and 15 lakh, 3.5% for Tk15-25 lakh and 4% for Tk25 lakh to Tk3  crore while 5% for Tk3 crore and above.

BTMA proposal will also urged the government to increase the cash incentives to 15% from 5% with a request for not imposing tax at source on 5% cash incentives to encourage entrepreneurs for availing incentives.

The other demands include-withdrawal of import duty on Polyethylene Terephthalate Chips (Pet Chips) and removing import duty and tax on synthetic filament tow, modal lyocell, sizing material and dyes and chemicals used in the textile industry, fire rated steel frame and steel door for spinning, weaving and dyeing-printing-finishing sector.

“We will appeal the government to fix all the taxes under a same umbrella as the existing taxes set under different heads create lot of trouble for us,??? said BTMA president, Jahangir Alamin, told the Dhaka Tribune.

“We urge the government to maintain the same 15% income tax for us in the next budget as the production costs have been increased.???

As the filaments are not being used widely in the country, we are going to urge the government to reduce import duty on it to encourage usage of filaments, he added.

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Report: Ibrahim Hossain Ovi
Source: Dhaka Tribune

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