National Board of Revenue has offered duty waiver on import of two types of yarn for Jamdani industry to facilitate the development of the sector.
Customs wing of NBR on March 19 issued a statutory regulatory order, amending the previous SRO on weaving industry, in this connection reducing the import duty for metalised round yarn and other metalised yarn.
NBR waived customs duty in excess to 5 per cent, all supplementary duty, regulatory duty and value-added tax on import of the two products.
Previously, there was a total of 91.88 per cent duty including 25 per cent customs duty, 20 per cent SD, 15 per cent VAT, 3 per cent RD, 5 per cent advance income tax and advance trade VAT respectively on import of metalised round yarn.
On the other hand, total duty rate was 60.73 per cent including 25 per cent customs duty, 15 per cent VAT, 3 per cent RD and 5 per cent AIT and ATV respectively on import of other metalised yarn.
After the waiver, total duty incidence will be around only 17 per cent.
Metalised yarn, one kind of textile yarn combined with metal in the form of thread, strip or powder or covered with metal, are basically used for design and decoration of Jamdani, one of the luxuries textiles of Bangladesh.
Officials of the NBR said that registered Jamdani Weavers Association would be able to import the yarns by paying duty at reduced rates.
They said that NBR offered the benefit in line with demand of Jamdani manufacturers to boost production, employment and contribution to economy.
The benefit will reduce the cost of production, Bangladesh Jamdani Manufacturers and Exporters Association founding secretary Md Zahirul Hoque told New Age on Monday.
He said that metalised yarn costs 20 per cent of the total production cost of Jamdani.
So, weavers will be benefited from the reduction of the duty as it will reduce the cost of production, said Zahirul, also the owner of Semom Fabrics, based in Tarabo of Rupgonj of Narayangonj.
NBR officials said that registered Jamdani weavers would import the yarns and distribute to their member weavers for the purpose of production of Jamdani.
Importers will have to pay duty at the original rate along with penalty for failure of using the imported yarns for the purpose, they said.
Earlier on November 2016, the Department of Patents, Designs and Trademarks under the industries ministry certified the Jamdani as the country’s first geographical indication product.
DPDT also registered 66 weavers as authorised users of geographical indication of Jamdani so that they can commercially utilise the GI recognition for the product.
Source :- Newagebd.net