The Bangladesh Textile Mills Association (BTMA) has urged the government to urgently seek political assistance, ensuring survival and promoting the sustainable development of the major textile industry within the light of global economic instability and competition.

This request was published in a press release today (July 13th). Previously, President BTMA Shawkat Aziz Russell moved full demands to state politicians at a high-level meeting at the Treasury Ministry on July 7th.

The key demands presented to Financial Advisor Dr. Salehuddin Ahmed, NBR Chairman Abdur Rahman Khan, and relevant senior officials include: the immediate repeal of the 2 percent advance income tax on cotton and synthetic fiber imports, the reinstatement of the 15 percent corporate tax starting from the fiscal year 2024-25, and the elimination of the specific duty of Tk 5 per kg on yarn produced from a blend of cotton and synthetic fibers.

BTMA reports that there are currently 1,858 textile mills affiliated with the organization, encompassing spinning, weaving, and dyeing-printing-finishing units. Approximately 23 billion US dollars have been invested in this private sector. The textile and garment sector accounts for 85 percent of Bangladesh’s export earnings, with 70 percent of that originating from BTMA-related industries. This sector is crucial to the country’s economy, as domestic production serves as a substitute for imports.

The meeting highlighted that, owing to the incentives offered by the Indian government, Indian textile products are being imported into Bangladesh at significantly low prices. This situation has led to local mills experiencing severe competition and hardship. Conversely, the imposition of a 2 percent advance income tax on cotton imports is discouraging domestic producers while simultaneously promoting foreign yarn imports. Consequently, the government is losing revenue, and the domestic industry is under threat.

BTMA also reported that a substantial quantity of cotton is currently awaiting unloading at the Chittagong port. Demurrage fees are escalating due to issues related to the advance income tax. As a result, there have been calls for the cancellation of these demurrage fees and the prompt repeal of the advance income tax.