Remove duty on man-made fibre import for boosting competitiveness
The global apparel market is dominated by manmade fibre-based products
Our demand is that the government ensure a smooth supply of gas and electricity, which are some of the essential components for the industry.
Another major challenge for our recycling industry — 7% VAT on jhut collection and 15% VAT on recycled yarn — should be withdrawn by the next budget.
The NBR also collects about 16% Tax Deducted at Source from local textile mills in supply of yarn, fabrics, dyeing and finishing of fabrics. It should be only 4% for the whole process.
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The global apparel market is dominated by manmade fibre-based products but we have to pay duty on import of the material — the government should remove it to make us competitive for export.
The country is scheduled to be graduating from an LDC to a developing country soon. After graduation, we need double stage value addition to get market access in the major markets, which requires more investment in backward linkage industries, especially woven textiles. But the financing cost hike makes it difficult.
The government should take measures to keep bank interest at an affordable level.
Mohammad Ali Khokon is the president of the Bangladesh Textile Mills Association (BTMA).
