BGMEA demands withdrawal of tax on fuel import
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) asked for a withdrawal of all types of taxes, including import duty on fuel imports, for one year to help the industry cope with the current economic crisis.
It also asked that the gas price be determined by calculating the average of both the local and imported price of gas.
The BGMEA also stressed the importance of uninterrupted gas supply in the letter sent to Prime Minister's Energy Adviser Dr Tawfiq-e-Elahi Chowdhury on Wednesday.
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National Board of Revenue Chairman Abu Hena Md Rahmatul Muneem, however, claimed that the incidence of tax, including of gas, was not high enough to impact the price of any product.
Saying that duty, even in the case of gas, was not a reason to hike the price of products, he pointed out that the rise was instead due to inefficiency, waste and the role of syndicates.
"But as we have checked, the tax burden does not fall that much on increased commodity prices," he said.
Meanwhile, importers stressed that the fuel import tariff was currently around 40% or more than that.
Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association, told The Business Standard that this tax amount is around 51% at the consumer level.
In its letter, the BGMEA also demanded a stop to system loss and illegal connections instead of opting for an abnormal gas price hike.
At the same time, taking into account the current economic recession situation, the organisation also said it would have been better to go for a gradual price increase.
"Due to the abnormal price hike, the domestic market has already seen an increase in the cost of raw materials, making it impossible to stay competitive," the letter, signed by BGMEA President Faruque Hassan said.
Stating fears of labour unrest, the letter said, "The rate of interest on bank loans has also increased due to the increase in inflation and it will increase further. As a result, it will become difficult to sustain the garment industry. Due to the global economic crisis, the excessive increase in the prices of daily necessities will put the workers under extreme hardship and create discontent among them."
