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Waive duties and VAT on Pragoti and textiles industries, ministers urge Muhith

  • Published at 01:01 pm June 23rd, 2017
  • Last updated at 03:18 pm June 23rd, 2017
Waive duties and VAT on Pragoti and textiles industries, ministers urge Muhith

Two ministers have requested Finance Minister AMA Muhith to waive the supplementary duties on state-run Pragoti Industries Limited, and VAT on textile industries for the next fiscal year.

Industries Minister Amir Hossain Amu and State Minister of Water Resources Lt Col (Retd) Muhammad Nazrul Islam recently sent separate letters to the finance minister, urging him to waive duties and VAT.

In his letter, Amu expressed apprehension that the three-tier increase in supplementary duties will hike prices of Mitshubishi’s Pajero and 2477CC double cabin pick-up vans.

Amu urged Muhith to review the changes in customs facilities as the increase in duties will negatively impact the import of cars. As a result, Pragoti will face severe losses.

The letter stresses on the importance of Pragoti Industries, mentioning that the company have deposited an average of Tk165 crore profit to state fund in last couple of years.

In his letter, State Minister for Water Resources Lt Col (Retd) Muhammad Nazrul Islam stated that 15% VAT on primary textile industries can result in closing down of more than 30% spinning mills by disproportionately burdening the people of Narsingdi area, where 70% of the country’s spinning mills are located.

Also drawing a connection to the upcoming general election, Nazrul wrote: “People of Narsingdi area will not be interested to vote for me in the next national polls.”