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ReturnBangladesh: Govt likely to impose NTBs on silk import
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PublishDate：
2007-08-20 15:10:00
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The government is likely to impose some non-tariff barriers (NTBs) on import of silk and silk products to safeguard the local silk industry.
The Ministry of Textiles and Jute recently asked the National Board of Silk to prepare a set of proposals in this regard.
The textiles ministry will make recommendations to the commerce ministry to impose some types of NTBs to discourage import of silk and silk products.
The textiles ministry will also ask the National Board of Revenue (NBR) to exempt silk industry from any type of value added tax (VAT) at production level so that local silk and silk products become competitive globally.
Presently, the local silk producers are facing stiff competition from abroad, said Md Fazlul Haque, convener of sub committee on National Silk Policy-2005 Implementation.
Indian and Pakistani silk products are more attractive for which Bangladeshi silk products fail to compete with the neighbours', he said.
The government should give priority to protecting its local products and safeguard the interests of a huge number of female workers involved in the silk industry, Haque said.
Alauddin Ahmed, president of Bangladesh Silk Manufacturers and Exporters Association, pointed out that due to the government's faulty silk policy, 2.79 lakh pieces of silk products and 34.55 lakh pieces of ethnic products had to be sold at lower prices in 2006 as those products could not be exported or sold domestically at expected prices.
He said, "If the government provides cash incentives or single-digit loan facilities for the sector, it can earn huge foreign exchange."
Alauddin Ahmed said the present taxation policy holds back the growth of the local industry as no VAT is imposed on import of silk yarn, while the local and poor rural producers have to pay 15 percent VAT on silk production.
He said silk worth Tk 50 crore is imported each year, while the locals produce silk worth Tk 9 crore.
Maria Saz Hafiz, a fashion designer of Aarong, a leading local fashion house, said Bangladeshi silk products have huge potential due to their quality and variety.
If the fashion houses can introduce new varieties of silk products, silk could be one of the major export items in future, Saz said.
Source:Industry Website
The Ministry of Textiles and Jute recently asked the National Board of Silk to prepare a set of proposals in this regard.
The textiles ministry will make recommendations to the commerce ministry to impose some types of NTBs to discourage import of silk and silk products.
The textiles ministry will also ask the National Board of Revenue (NBR) to exempt silk industry from any type of value added tax (VAT) at production level so that local silk and silk products become competitive globally.
Presently, the local silk producers are facing stiff competition from abroad, said Md Fazlul Haque, convener of sub committee on National Silk Policy-2005 Implementation.
Indian and Pakistani silk products are more attractive for which Bangladeshi silk products fail to compete with the neighbours', he said.
The government should give priority to protecting its local products and safeguard the interests of a huge number of female workers involved in the silk industry, Haque said.
Alauddin Ahmed, president of Bangladesh Silk Manufacturers and Exporters Association, pointed out that due to the government's faulty silk policy, 2.79 lakh pieces of silk products and 34.55 lakh pieces of ethnic products had to be sold at lower prices in 2006 as those products could not be exported or sold domestically at expected prices.
He said, "If the government provides cash incentives or single-digit loan facilities for the sector, it can earn huge foreign exchange."
Alauddin Ahmed said the present taxation policy holds back the growth of the local industry as no VAT is imposed on import of silk yarn, while the local and poor rural producers have to pay 15 percent VAT on silk production.
He said silk worth Tk 50 crore is imported each year, while the locals produce silk worth Tk 9 crore.
Maria Saz Hafiz, a fashion designer of Aarong, a leading local fashion house, said Bangladeshi silk products have huge potential due to their quality and variety.
If the fashion houses can introduce new varieties of silk products, silk could be one of the major export items in future, Saz said.
Source:Industry Website
