36 textile mills abused duty benefit while importing capital machinery
Release time:
2020-11-06
Thirty-six textile mills, located in Narsingdi, imported 30,350 power looms in the last five years to make clothes under a one-percent concessionary duty benefit for capital machinery import.
The owners of the mills, however, neither set up the factories nor used the looms for production, according to sources at the National Board of Revenue (NBR).
Other than 16 percent of the power looms imported over that duration, the 36 mills sold the rest of the machines in the local market, depriving the state from getting its due revenues, the NBR source said.
In a sudden visit to these textile mills recently, officials of VAT Commissionerate, Dhaka (East) detected abuse of the duty benefit for importing capital machinery.
The NBR field office detected evasion of duty and VAT of nearly Tk 39 crore in the last five years by the 36 mills.
Tasmina Hossain, commissioner of VAT Commissionerate of Dhaka East, wrote to Chattogram Customs House yesterday asking it to increase vigilance during release of consignments imported by these firms.
The Daily Star has collected a copy of the letter.
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Since the beginning of the year, the epidemic, which has lasted for more than half a year, is rewriting the development trajectory of many dyeing and finishing enterprises. In the first quarter of 2020, affected by the epidemic, the domestic and foreign demand for the textile market weakened, most enterprises had insufficient production, some enterprises' product Price or processing fees decreased, coupled with the lack of elasticity in expenses such as wages and rent, and the increase in epidemic prevention, logistics and transportation costs, the profitability of enterprises has significantly decreased.
Since 2020, in the face of the "big test" of the epidemic, China's dyeing industry has steadily advanced the resumption of work and production. Currently, the production supply capacity and the coordination of the industrial chain have returned to normal. Although domestic economic activity has gradually recovered, the recovery of consumer desire and demand for textiles and clothing still requires time. At the same time, due to the fact that the epidemic abroad has not shown any significant signs of improvement, the export situation of dyeing products is still severe, and the main operating indicators of the industry in the first five months are still in the negative growth range. As the domestic market gradually warms up, the operation of the dyeing industry is expected to rebound under pressure.
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