Dhaka: Leaders of Bangladesh Textile Mills Association (BTMA) today demanded the government for immediate withdrawal of two percent of Advance Income Tax (AIT) on cotton import to safeguard the local spinning mills. They also urged the interim government to reset the corporate tax like the RMG sector until 2028.
According to Bangladesh Sangbad Sangstha, the BTMA leaders made these demands at an emergency press conference held at Gulshan Club in the city. Their other demands include exemption of specific tax of Taka five per kg at the production stage on cotton yarn, synthetic fibres, and other fibres produced by domestic textile mills. The leaders expressed concerns about the primary textile sector’s ability to remain competitive due to low gas pressure, high bank interest rates, and a reduction in cash incentives on exports.
BTMA President Showkat Aziz Russel, along with other industry leaders such as Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Vice-President Amal Podder, Bangladesh
Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA) Chairman Hossain Mehmood, and Bangladesh Cotton Association Adviser Mohammad Ayub, spoke at the press conference. They emphasized the urgency of revising the tax and VAT decisions. BTMA President Russell warned that the consequences of not addressing these issues could be irreversible.
BTMA Vice-President Abdullah Al Mamun highlighted the potential crippling effect of the new tax on an industry already burdened with high energy costs, labour expenses, and declining export incentives. He noted that the effective corporate tax rate for textile mills could increase from 27.5% to nearly 59% due to the new tax structure, further diminishing the industry’s competitiveness compared to its regional counterparts. Additionally, the new tax, coupled with additional VAT burdens and reduced export incentives, comes at a time when mills are facing a gas and electricity crisis.