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Bangladesh mills demand withdrawal of VAT & duty on MMF

Jun 09, 2021
Bangladesh mills demand withdrawal of VAT & duty on MMF

Bangladesh

In order to meet the demand of the non-cotton fashion industry, the textile mill owners in Bangladesh have demanded a withdrawal of value added tax (VAT) and import duty on all kinds of manmade fibres (MMF).

According to the textile millers, it is important for the government to accept the request as the demand for manmade fibre is higher than cotton made fibre globally. 

According to Mohammad Ali Khokon, President, BTMA, if the country wants to increase its global market share, then manmade fibre should be chosen, as the demand for the garment made the manmade fibre is rising. He also demanded the government to fix Tk 3 as VAT on sales per kg of all kinds of yarn available. The current rate of tax that NBR collects is Tk 3 as VAT on the sales per kilogram of yarn made from cotton and Tk 6 per kg on the sales of yarn made from manmade fibre. He said that this rate should be uniform for all kinds of yarn.

This proposed budget was welcomed by the BTMA chief but he thinks that there should be more facilities for the textile sector to attract more investment and to generate employment.

Manmade fibre occupies 78% of the global fashion industry. In Bangladesh this scenario is reversed. Here, 74% of the total garment export is done from cotton fibre.

Source – The Daily Star

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https://indiantextilejournal.com/latest-textile-industry-news/bangladesh-textile-firms-face-low-profits-and-sales

https://indiantextilejournal.com/latest-textile-industry-news/bangladesh-s-rmg-exports-up-due-to-crises-in-neighbours