Struggling dressmakers decry increase in VAT

Tailoring shop owners said the nearly four-fold increase in the value added tax on their income is set to ruin the industry already facing disparate competition from the increased sales of low-price readymade clothes trickled out of export oriented garments industries.
The government in the current budget has increased the VAT from 4.5 per cent to 15 per cent on the bills of dress makers.
‘The high rate of VAT on a struggling industry is not only unjustified, but also indicates that the government wants the dress-making industry to be eliminated,’ said Sirajul Islam, president of the Bangladesh Dress Makers Association.
The association groups nearly 1,000 members mainly who have tailoring shops in the metropolitan cities of the country.
Islam argued that many of more than 5,000 tailoring shops, which are not the association members, in the metropolitan cities would feel the impact of increased VAT.
He said work orders in his shop had been halved in recent times compared to that of a decade ago.
‘Dress making business has been on decline for many years as people now prefer readymade garments, which are comparatively cheaper,’ said Siraj, who owns Orient Tailors at Ramna Bhaban—a hub of gents tailors.
Abul Hashem, another Ramna Bhaban tailoring shop owner, said wages of tailors as well as miscellaneous overheads have increased.
‘Increased expenditure and decreased orders have pushed up per unit production cost that has forced us to raise cost of dress making,’ said Hashem. ‘Decades old dressmakers are now thinking of closing down their business due to contentious loss and downslide.
Almost every dressmaker in the city echoed Hashem, saying that the quantity of their work orders had declined in recent years but expenditure increased.
‘Young people were the largest segment of our clients but most of them now prefer branded shirts and trousers,’ said Jasim Uddin of Bengal Tailors.
Pointing out the reason of the bad shape of their industry, he said ‘Imported Chinese dresses are also comparatively cheaper.’
At present, the dressmakers mainly depend on making suits as the young people prefer readymade shirts and trousers, he added.
Dress makers urged upon the government to look into the matter and help them to continue with the age old industry.

Courtesy of NewAge