Millers demand waiver of source tax on raw jute

Business Desk :
Private jute millers have demanded government support, including waiver of source tax on raw jute at purchase level and low-cost funds, for further development of the sector.
They also demanded strict enforcement of the Mandatory Jute Packaging Act-2010 to enhance the local use of jute-made bags in the country.
The demands came from the 39th annual general meeting of the Bangladesh Jute Mills Association (BJMA) at the association’s office in Dhaka city on Saturday.
BJMA leaders said jute goods export has fallen in recent times mainly due to the Russia-Ukraine war and Indian anti-dumping duty on Bangladeshi jute products.
The government has imposed 2% tax at source on raw jute purchase, which also reduces earnings.
The BJMA sat with different ministries for action to withdraw the source tax, but with no substantial progress yet, BJMA chairman Md Abul Hossain said.
However, the textile and Jute Ministry has requested the Finance Ministry to create a low-cost fund of Tk500 crore initially out of the proposed Tk10,000 crore Jute Sector Development Fund.
As instructed by the Prime Minister’s Office, the jute ministry sent a demi-official letter to the Finance Minister to primarily set up a Tk500 crore fund with 2% interest rate.
“We hope this fund will be developed within a short time,” added Hossain.
The BJMA also requested the government to take initiatives to enlist jute and jute products as agricultural goods to get adequate support.
It also suggested that the government play an active role in helping withdrawal of anti-dumping duty by the Indian government.
BJMA vice-president Rabiul Ahsan, secretary general Abdul Barik Khan and members of the association, among others, were present at the meeting.