Gas crisis haunts Gazipur garment factories as well
An acute gas crisis has continued to severely impact production in textile and garment factories not only in Narayanganj and Narsingdi but also in the country s largest industrial belt of Gazipur and Maona.
Factory owners in the latter two said they have been losing production and incurring financial losses for over six months.
Yesterday the gas pressure was so low in some places that production had been put on hold. In places where the pressure was a little bit high, factories could not run in full swing.
Nearly 500 textile, spinning, dyeing, finishing and weaving mills have been impacted in the industrial belts of Narayanganj, Narsingdi, Madhabdi, Maona, Bhabanipur and Kanchpur.
Low gas pressure hurts over 300 large factories thedailystar.net - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thedailystar.net Daily Mail and Mail on Sunday newspapers.
Uniform VAT rate sought for all yarn sale Star Business Report Star Business Report
Textile millers and garment manufacturers yesterday demanded that the government impose value-added tax (VAT) of Tk 3 on the sales of every kilogramme of all kinds of yarns, including that of manmade fibres, to facilitate product diversification.
Currently, the rate has been set by the National Board of Revenue (NBR) on sales of yarn made of cotton fibres inside the country.
But millers who produce yarn from manmade fibres have to pay Tk 6 per kg as VAT on sales.
Similarly, millers who make fabrics from manmade fibres have to pay a 5 per cent VAT at the production level whereas those using cotton fibres need not.
-
The yet to recover apparel business and fresh lockdowns in EU and US has led to a 40 per cent increase in Bangladeshâ yarn prices, says Md Fazlul Hoque, Managing Director, Plummy Fashions. As per Textile Today, prices are expected to stabilize in coming months with an increase in production. Demand is likely to rebound on recovery from the pandemic leading to a decline in cotton stocks, says an ICRA report. However, absolute cotton stocks, as well as cotton stock-to-use ratio, are expected to remain high.
The rise in local yarn prices can be attributed to growing international cotton prices that also affected Bangladeshâs garment shipments, especially of knitwear, during the ongoing pandemic, says Monsoor Ahmed, Secretary, Bangladesh Textile Mills Association (BTMA).
BGMEA proposes for reducing existing tax at source
279
Exporters Association (BGMEA) today demanded to the government to reduce the
tax at source on RMG exports at 0.25 percent from the existing 0.50 percent
and thus keep this rate unchanged for the next five years.
The leaders of BGMEA, led by its president Dr Rubana Huq, placed this
demand before the National Board of Revenue (NBR) at a pre-budget meeting for
the next fiscal year (FY22) held at the conference room of the NBR building
in the city’s Segunbagicha area today.
Alongside the BGMEA, the leaders of Bangladesh Knitwear Manufacturers and
Exporters Association (BKMEA) and Bangladesh Textiles Mills Association