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Bangladesh: BTMA demands exemption from taxes on yarns and fabrics

Mohammad Ali Khokon, President of Bangladesh Textile Mills Association (BTMA) has demanded withdrawal of VAT on all kinds of yarns and fabrics sold between March 20 and June 30 this year. He also sought exemption of interest on term loans for six months and extension of term loan repayment period by two years for the affected millers.

He demanded enabling payment of utility bills like gas and electricity for the next six months starting from March in 12 monthly installments while withdrawing associated VAT, interest and surcharge. He demanded the government facilitate duty free import of textile dyes and chemicals until June 30 this year.

The BTMA chief also urged the government for withdrawing all demurrage fees for imports at the Chattogram port between March 20 and June 30 this year. Khokon revealed that yarn and fabrics worth Tk 3,500 crore have piled up in around 250 spinning and weaving mills in Bangladesh because of the ongoing movement restriction to curb the spread of coronavirus.

These millers had manufactured targeting two upcoming festivals Pahela Baishakh and Eid-ul Fitr. The affected millers mainly produce yarn and fabrics for the local market, Khokon said in the letter, which he prepared to submit to the finance ministry and other government offices next week.

This year, the government imposed a ban on large gatherings to celebrate the first day of the Bangla calendar, when clothing items worth around Tk 1,500 crore.