Bangladesh textile bosses are fighting mad about new taxes that could kill their businesses. The government slapped a 2 percent tax on cotton imports and raised yarn taxes from 3 to 5 taka per kilogram. Industry leaders held an angry meeting at Gulshan Club on Saturday to demand the taxes disappear. BTMA President Shawkat Aziz Russell said textile companies cannot handle these extra costs. The group stopped releasing cotton shipments from ports to force the government to back down.
Factory owners warn that textile mills will shut down if the taxes stay. Bank interest rates have jumped to 16 percent and gas prices keep rising. Power cuts happen all the time and make production impossible. The currency keeps losing value and export incentives got cut. Companies face a perfect storm of problems that threatens thousands of jobs.
The new taxes actually help Indian yarn sellers compete against local producers. Indian traders get incentives to export yarn to Bangladesh that local companies do not receive. This policy rewards foreign businesses and punishes domestic ones. Textile leaders say the government should protect local industries instead of destroying them. The Finance Ordinance 2025 made everything worse for spinning companies.
Industry experts believe these taxes will hurt the economy more than help it. The textile sector already struggles with high energy costs and supply shortages. Adding more taxes could force factories to close permanently. Workers might lose their jobs if companies cannot afford to operate. The government needs to rethink these policies before the damage becomes permanent.
Factory owners warn that textile mills will shut down if the taxes stay. Bank interest rates have jumped to 16 percent and gas prices keep rising. Power cuts happen all the time and make production impossible. The currency keeps losing value and export incentives got cut. Companies face a perfect storm of problems that threatens thousands of jobs.
The new taxes actually help Indian yarn sellers compete against local producers. Indian traders get incentives to export yarn to Bangladesh that local companies do not receive. This policy rewards foreign businesses and punishes domestic ones. Textile leaders say the government should protect local industries instead of destroying them. The Finance Ordinance 2025 made everything worse for spinning companies.
Industry experts believe these taxes will hurt the economy more than help it. The textile sector already struggles with high energy costs and supply shortages. Adding more taxes could force factories to close permanently. Workers might lose their jobs if companies cannot afford to operate. The government needs to rethink these policies before the damage becomes permanent.
