BD inks jute export deal with Australia

Bangladesh Jute Mills Corporation (BJMC) has signed an agreement with Golden Fiber Australia Private Limited (GFAPL) of Australia under this deal BJMC will export different jute goods including sacks to Australia worth Tk565 crore in next two years.

The deal was signed at the textile and jute ministry’s conference room yesterday. BJMC Secretary Mohammad Saleh Uddin and Sakib Ahmed Khandoker of the GFAPL signed the agreement on behalf of their respective sides, according to a statement issued by the ministry.

The Australian company GFAPL will act as a strategic partner and provide assistance to the BJMC to expand Bangladesh’s jute goods market in Vietnam, Indonesia, Papua New Guinea, Australia, New Zealand and the USA.

Although the Prime Minister Sheikh Hasina had proposed to reduce the tax at source rate on all the exports at 0.70%, she did not mention anything about the jute makers.

However, the income tax wing of the National Board of Revenue (NBR) yesterday issued a Statutory Regulatory Order (SRO) that said the rate was fixed at 0.60% for the jute makers, which will remain effective till June 30, 2019.

The budget for fiscal year 2016-17 finally brought smile to jute goods manufactures as the government has reduced the tax at source to 0.70% from the proposed 1.50%.

Not only the reduced tax at source, but the jute product exporters will also enjoy corporate tax at a reduced rate from the next fiscal year till FY20.
Export earnings from jute and jute goods achieved a moderate growth, riding on better performance of raw jute export. Earnings from jute and jute goods grew by 25.71% to $69.77, while earnings from raw jute increased 74.30% to $25.50 million.

The agreement signed between BJMC and GFAPL will be renewed in every two years.

Jute ministry and BJMC high officials including Textile and Jute Secretary Shubhashish Bose and BJMC Chairman Dr Mahmudul Hasan, among others, were present on the occasion of signing the deal.