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BJMA for source tax at 0.30pc

Bangladesh Jute Mills Association (BJMA) expressed its grave concern on Sunday over increase in tax at source, which was proposed for the new fiscal year (FY), and urged the government not to impose it on export of jute goods.

The jute goods exporters are now paying a 0.6 per cent tax and any increase will hit hard the ailing jute industry which is facing stiff competition in the international market due to fall in demand and economic meltdown in EU countries.

“Under this situation increase in the tax will cast a negative impact on export of jute goods,” said BJMA chairman Mohammad Shamsuzzoha in a statement issued to the press urging the government to keep the tax at source at 0.30 per cent.

According to BJMA, about 40 million people are directly or indirectly dependent on the jute industry, which is quite environment-friendly, and urged the government to bring the industry under green refinancing programme to help reinvigorate the country’s jute mills.

The BJMA, however, appreciated the government for taking initiative to formulate an independent jute policy to revive the glory of the Golden fibre, further expand its market at home and abroad and also promote its diversified use. It also appreciated the government for reducing the corporate tax.

The association also demanded more funds for modernisation of old jute mills and urged the government to allocate funds for both public and private jute mills without any discrimination.