Leaders of the Bangladesh Textile Mills Association on Monday at a meeting urged finance adviser Salehuddin Ahmed to withdraw 2 per cent advance income tax for the import of cotton.
Led by BTMA president Showkat Aziz Russel told the finance adviser that imposition of the tax by the National Board of Revenue in the current financial year of 2025鈥�26 was not equitable.
The finance ministry was expected to review the decision in the 24 hours, said the BTMA president, while talking to reporters after the meeting at the secretariat.
The finance adviser did not make any comment about the meeting held on the 7th day of the new FY26.聽聽聽聽聽
NBR chairman Abdur Rahman Khan was present at the meeting.
Officials attending the meeting said that the businesses were asked to maintain the new rate as it was not imposed only for the import of cotton.
The NBR has imposed 2 per cent of advance income tax on imports of over 150 essentials and capital goods for industries, including 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.
During the meeting, the NBR chairman assured the BTMA leaders of meeting other demands linked to value added tax, said the officials.
The day鈥檚 meeting was arranged within 48 hours after the BTMA held a special press conference at the Gulshan Club on Saturday to press home their demands, including withdrawal of 2 per cent advance income tax on cotton import.
BTMA leaders also demanded exemption from a specific tax of Tk 5 imposed per kilogram of domestic production of cotton yarn. They also told the authorities to reconsider the corporate tax decisions.
The textile millers have already questioned whether the move was designed to protect the interests of neighbouring countries at the expense of Bangladesh鈥檚 textile industry.
The BTMA in its annual report for 2024said that investment in the primary textile sector was around $23 billion and the sector contributed around 13 per cent in the country鈥檚 Gross Domestic Product.
According to the annual report, around 100 per cent yarn demand for knit readymade garments and 55鈥�60 per cent yarn demand for woven readymade garments are met by the country鈥檚 primary textile that employs around 1.6 million workers, 60 per cent of which are women.
