Interviews
Fix VAT on yarn, withdraw VAT, import duty on MMF: Bangla millers
08 Jun '21
2 min read
Pic: Shutterstock
Textile millers in Bangladesh recently demanded withdrawal of value added tax (VAT) and import duty on all kinds of man-made fibres (MMF) for the potential growth of the non-cotton fashion industry. They also demanded a fixed policy for setting VAT at Tk3 on yarn. Absence of these two policy decisions may hamper the ‘Made in Bangladesh’ initiative, they felt.
In the proposed budget, the government did not address these issues even though entrepreneurs had been demanding this, the millers said.
They were addressing a post-budget press conference at the office of the Bangladesh Textile Mills Association (BTMA).
The government should consider the request as the global demand for man-made fibre garments is higher than those made from cotton. Man-made fibre occupies 78 per cent of the global fashion industry, while the rest is held by cotton fibre.
But in Bangladesh, the scenario is reversed. Of the total annual garment export, 74 per cent is made from cotton fibres, while 26 per cent is from man-made fibres, the millers said.
"If we want to grab more of the global market share, we will have to choose the manmade fibre as the demand is rising for those garment items," BTMA president Mohammad Ali Khokon was quoted as saying by Bangladesh media reports.
Welcoming the proposed budget, the BTMA chief wanted some facilities for the textile sector for attracting further investment and for generating more employment.
Khokon also demanded that the government fix Tk 3 as VAT on the sale of a kilogram of all kinds of yarn in the domestic market. Currently, the National Board of Revenue collects Tk 3 as VAT on the sale of a kg of yarn made from cotton and Tk 6 per kg on the sale of yarn made from man-made fibres. So the VAT rate should be uniform for all kinds of yarn sale, he said.
In the proposed budget, the government did not address these issues even though entrepreneurs had been demanding this, the millers said.
They were addressing a post-budget press conference at the office of the Bangladesh Textile Mills Association (BTMA).
The government should consider the request as the global demand for man-made fibre garments is higher than those made from cotton. Man-made fibre occupies 78 per cent of the global fashion industry, while the rest is held by cotton fibre.
But in Bangladesh, the scenario is reversed. Of the total annual garment export, 74 per cent is made from cotton fibres, while 26 per cent is from man-made fibres, the millers said.
"If we want to grab more of the global market share, we will have to choose the manmade fibre as the demand is rising for those garment items," BTMA president Mohammad Ali Khokon was quoted as saying by Bangladesh media reports.
Welcoming the proposed budget, the BTMA chief wanted some facilities for the textile sector for attracting further investment and for generating more employment.
Khokon also demanded that the government fix Tk 3 as VAT on the sale of a kilogram of all kinds of yarn in the domestic market. Currently, the National Board of Revenue collects Tk 3 as VAT on the sale of a kg of yarn made from cotton and Tk 6 per kg on the sale of yarn made from man-made fibres. So the VAT rate should be uniform for all kinds of yarn sale, he said.
Fibre2Fashion News Desk (DS)
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
