The textile millers of the country said that if the government could not withdraw the newly imposed 2 per cent advance income tax immediately, the sector could lose competitiveness which could lead to the closure of the textile factory units.
They also urged the interim government to withdraw the 2 per cent AIT on the import of cotton by Monday.
They were speaking at a special press conference organized by the Bangladesh Textile Mills Association on Saturday at the Gulshan Club in the capital.
Recently, the National Board of Revenue issued an SRO imposing a 2 per cent AIT on imports of over 150 essentials and capital goods for industries including some major items like cotton, wheat, flour, maize, rice, soya beans, sunflower seeds, mustard seeds, linseed, sugar, bulbs, tubers, jet fuels, kerosene, diesel, furnace oil, LPG, natural gas, petroleum bitumen, iron oxides and zinc sulphate.
The textile millers also questioned whether the move is designed to protect the interests of neighboring countries at the expense of Bangladesh鈥檚 textile industry.
At the event, BTMA President Showkat Aziz Russel stated that with bank interest rates at 18 per cent and an additional 2 per cent being deducted as income tax from the working capital, it鈥檚 becoming impossible for them to continue doing business.
He also said that importing yarn from India has become cheaper than producing it locally due to current regulations.
He also questioned whether the government formulated policies to strengthen neighboring economies and generate employment there, or whether they worked tirelessly to safeguard the interests of the neighboring countries.
In this regard, he urged the government to immediately withdraw the AIT, to exempt a specific tax of Tk 5 imposed per kilogram of domestic production of cotton yarn, and reconsider the corporate tax decisions.聽
鈥業f not, the consequences will be irreversible,鈥� he added, saying that the new tax, coupled with additional VAT burdens and reduced export incentives, comes at a time when mills are already grappling with a severe gas and electricity crisis.聽
He also urged the government to engage in open dialogue with the industry, emphasizing that business owners are not adversaries but partners in economic development.
BTMA vice-president Saleudh Zaman Khan said that vested interest groups were attempting to dismantle the textile industry.
鈥楾his is nothing short of a deliberate attempt to destroy the country鈥簊 textile sector,鈥� he added.
BTMA director Abdullah Al Mamun stated that they are on the brink of collapse, as many factory owners have already begun looking to sell their units due to existing challenges.
The government never adjusted the AIT in the last 50 years, as they didn鈥檛聽have the mechanism to adjust AIT, he added, saying that this new AIT has only added salt to their wounds.
BTMA director Mohd Khorshed Alam stated that the dismantling of Bangladesh鈥檚 textile sector isn鈥檛 new, alleging that the agenda has been in motion for several years.
鈥楩ive to six years ago, a neighboring country鈥檚 consulting firm collected the balance sheets of numerous local textile mills under the pretext of providing support. The conspiracy started there,鈥� he added.
鈥楤ut if we don鈥檛 raise these issues, how will they understand our challenges? If criticism leads to intimidation, a time will come when even regret won鈥檛 be enough.鈥�
Hossain Mehmood, president of the Bangladesh Terry Towel and Linen Manufacturers and Exporters Association, stated that many textile businesses are now considering sourcing cotton from the US, particularly in light of the reciprocal tariffs imposed by the US.
鈥楤ut with this 2 per cent AIT, that pathway would become economically unfeasible,鈥� he added.
BTMA director Rajeeb Haider said that importing 2 per cent AIT on cotton imports would open the country as a playground for foreign exporters.
鈥業f we see the textile policy of India and Bangladesh in the last 20 years, it would be clear that Indian formulated policy to protect their sector where we formulated policy to hand over our sector to the foreigners,鈥� he added.
Business leaders from the textiles, cotton, and knitwear sectors also spoke at the event.
