Bangladesh apparel makers demand HS code for imports, tax cuts

They also advocated waiving the 7.5 per cent value-added tax (VAT) on raw materials for recycled fibres production and the 15 per cent VAT on the purchase of these fibres by the spinning mills.

Additionally, the garment makers urged the adoption of the Harmonised System (HS) for imports, a standardised numerical method used globally by the customs authorities to classify traded products.

Furthermore, BGMEA suggested reducing income tax on cash incentives from 10 per cent to 5 per cent to enhance the apparel industry’s capacity.

They also recommended disallowing certain incomes and expenditures, such as gains on asset disposal, for corporate taxation instead of company tax.

Similarly, the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) proposed refunding the remaining amount from advance income tax deducted at source after filing tax returns.

They also urged a reduction in income tax on cash incentives against exports from 10 per cent to 3 per cent.

Meanwhile, in a written statement, the Bangladesh Textile Mills Association (BTMA) suggested VAT exemptions at the local level and on supplies to spinning mills and production at the local level.

They highlighted the potential benefits of using recycled fibres, estimating potential savings of up to $1 billion in import costs.

NBR chairman Abu Hena Md Rahmatul Muneem welcomed the recycling initiative, emphasising the importance of supporting recycling industries for environmental cleanliness.

However, he expressed concerns about the potential misuse of benefits, stressing the need for robust mechanisms to prevent abuse and ensure responsible utilisation of privileges granted to the industries.

Fibre2Fashion News Desk (DR)