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Bangla Mills Seek 5% Vat Exemption on Sale of Local Yarn

Source Textile Reads22-08-19

Bangladesh textile millers recently demanded exemption of 5 per cent value added tax (VAT) on sale of local yarn to make the domestic yarn market more competitive. Export-oriented yarn producers are exempted from VAT in the proposed budget. Yarn makers catering to the domestic markets, however, will have to face Tk 24 as VAT on sale of a kilogram of yarn.

This will discourage yarn users from purchasing domestic yarn, which will lead to dominance of foreign yarn in the domestic market and gradually closing down of the yarn mills in the country, according to Mohammad Ali Khokon, president of Bangladesh Textile Mills Association (BTMA).

The price of some basic garments will also go up putting consumers under pressure, Khokon was quoted as saying by Bangladesh media reports.

Khokon also demanded that the government should continue imposing source tax at 0.25 per cent on export receipts as source tax will be done away with at the end of this month.

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