Mohammad Ali Khokon President of BTMA urges govt withdraw VAT on man-made fiber yarn on upcoming national budget. He also said now world business is changing & moving product diversification. So, we need to focus value addition with man-made fiber.
He addressed BTMA proposal at 41th advisory committee meeting organized by NBR & FBCCI on 18 April in online. He also urged the government to withdraw advance Tax on importing textile machinery.
BTMA proposed some major issue to consider for upcoming National Budget:
1. To impose VAT of TK 3 /kg to all the yarn (whichever fiber it is made of) like cotton and the 5% VAT on the fabric of artificial fiber at production stage need to be exempted.
2. To determine Tax at Source of 0.25% to encourage the export business.
3. To re-determine the fabric tariff value at the import stage. Recently the proposals have been sent to NBR by Tariff Commission.
4. To determine Back-to-back LC as the single instrument for issuing UP from Bond Commissionerate for Deemed Exporters. To impose 1% Tax ( similar tax rate ) for all capital machinery and spare parts. Deemed exporters should be equally treated as they have a significant role in the country’s economy.