Domestic jute millers have sought steps to remove 2% tax at source on raw jute to help the sector survive.
The Bangladesh Jute Mills Association (BJMA) recently requested the National Board of Revenue to take necessary action regarding the issue.
Around 50 million people, including farmers, labourers, traders and industry owners, involved in the sector are passing through hard times for source tax imposition.
Neighbouring India earlier imposed anti-dumping duty on the export of jute and jute goods but did not impose such duty on raw jute or others, argues the BJMA.
According to the letter, the prices of Bangladeshi jute products are higher in the global market, resulting in the loss of the jute’s competitiveness.
When the domestic market is awash with polythene bags and artificial packages, the imposition of such tax will hasten the sector's collapse, it cites.
BJMA claimed that its members are in trouble for this source-tax obligation, requesting removal of the provision of presenting taxpayer's identification number (TIN) during raw jute trading.
The millers apprehend that the prices of jute products will escalate in the global market if such tax is given. Losing out completely even in the international market, read the letter.
According to a central bank circular, jute yarn, hessian and diversified jute goods exporters get 7%, 12% and 20% cash incentives respectively.
Bangladesh earned Tk659 crore from raw jute exports in FY22.
An estimated 7-8 million bales are produced every year locally.
