Exporters let down by budget 2008-09 - BTMA

June 18, 2008 (Bangladesh)

The 14.58 billion budget for fiscal 2008-09 received mixed reaction from the industrial sector and those coming from the textile industry were not any different.

When Fibre2fashion approached Mr Towfique Hassan, Secretary General from Bangladesh Textile Mills Association (BTMA), he candidly stated that the budget is investment and industry friendly but not really export-friendly.

Mr Hassan asserted, “Reduction of duty on import of capital machinery under indemnity bond and introduction of 1 percent import duty will reduce hassles, but it is bound to increase project costs since textile industry is very much capital intensive. This will in turn affect the competitiveness of domestic exports.”

Besides reduction in duty to 3 percent will have little impact in the overall performance of the industry. On the other hand, continuation of tax holiday till 2011 will encourage investment but reduction of period in phases will not yield the desired results.

On the positive side, Mr Hassan welcomed the increase in subsidy as it will not only boost confidence in the sphere of business but will also improve productivity. Additionally, complete withdrawal of turnover tax scheme was also highly applauded by the textile industry.

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