The Bangladesh Textile Mills Association on Sunday thanked the government for imposing Tk4 tax on sale of per kg yarn instead of the proposed 5% value added tax (VAT) in the fiscal year (FY) 2019-20.
The association had previously urged the government to keep the locally produced yarn out of the VAT net, keeping 0.25% source tax and 5% advance tax (AT) on machinery, spare parts and raw materials unchanged.
Currently, yarn manufacturers pay Tk3 as VAT on per kg yarn sale.
BTMA President (in-charge) Alamgir Shamsul Alamin said: “This decision of imposing Tk4 VAT on sale of per kg yarn will benefit the country’s textile sector.”
Meanwhile, Real Estate and Housing Association of Bangladesh (REHAB) also hailed the government’s decision of lowering registration fee on flat sales.
In the draft budget, 20% to 29% tax reduction was proposed by the finance minister on registration and stamp fee regarding housing and land investments.
“In the budget for fiscal year 2019-20, the government has taken initiative to lower registration fees on flat sale, which will play an important role in revenue collection,” Nurun Nabi Chowdhury, senior vice president of REHAB.
This initiative would help the sector people to overcome dull situation the sector was going through now, said Nurun Nabi.
In addition, allowing black money in buying flats and apartments will play a significant role in increasing internal resources, he added.
