Home / Knowledge / News / Textiles / Bangladesh's Budget cuts supplementary duty on textiles
Bangladesh's Budget cuts supplementary duty on textiles
06
Jun '14
Mr. Abul Maal A Muhith
Mr. Abul Maal A Muhith
In his Budget Speech 2014-15, Bangladesh Finance Minister Abul Maal Abdul Muhith has proposed reduction of supplementary duty rates on fabrics, garments and clothing accessories.
 
“The Value Added Tax and Supplementary Duty Act, 2012 is scheduled to be implemented from 1st July, 2015. Bearing in mind the imperative of rationalising the present incompatible import tariffs in the light of the provisions made in the new VAT law and also the capacity of tolerance by the domestic industries, existing supplementary duty (SD) rates shall have to be reduced,” Mr. Muhith said.
 
The Budget proposes to reduce supplementary duty on woven fabrics (excluding HS code 5407.10.10) from the existing 30 percent to 20 percent, on most knitted or crocheted fabrics from 45 percent to 30 percent, on track suits and other garments from 45 percent to 30 percent, and on various clothing accessories form 60 percent to 45 percent.
 
In the light of ‘Vision 2021’, which aims to transform Bangladesh into a middle income country by 2021, the target growth for the next fiscal year 2014-15 has been pegged at 7.3 percent, which would increase to 10 percent by 2021. To achieve this target, a number of measures, including stimulus packages will be taken for readymade garments and other sectors to add further momentum to the export sector, Mr. Muhith said. Steps would also be taken for product and market diversification in the export sector, he added.
 
In order to help create favorable production environment compatible with international standards, the Budget proposes to allow the export-oriented readymade garments sector to import without duties on certain conditions the raw materials necessary for the manufacture of prefabricated buildings. “In addition to that, the existing duties on fire resistant door, emergency light, sprinkler system, etc. are being proposed to be fully exempted in order to ensure internal security and compliance of standards by the RMG sector,” the Budget Speech read.
 
For the continuation of the development of the textile sector, the present 10 percent duty chargeable to a few raw materials used in this sector is proposed to be reduced to 5 percent. “Flex fiber, a raw material of textile sector, used to make the fabrics bright is proposed to be subjected to 5 percent duty from the present 10 percent. Likewise, the existing 5 percent duty on artificial staple fiber is proposed to be reduced to 3 percent from the existing 5 percent,” Mr. Muhith said.
 
The Budget also names the garment industry among the six priority sectors identified for imparting training of international standards over a period of three years using 32 institutes of three ministries, SME department of Bangladesh Bank, PKSF and 9 industrial organisations.
 

Fibre2fashion News Desk - India


Must ReadView All

Pic: DWilliams from Pixabay

Textiles | On 21st May 2019

US tariff hike on Chinese textiles: Advantage India

The inclusion of chapters 50-60 in the recently imposed additional...

Pic: Lena Vanel from Pixabay

Textiles | On 21st May 2019

US CPSC considering changes to flammability standards

The US Consumer Product Safety Commission (CPSC) is requesting...

Australia, ILO work to raise Bangla working conditions

Apparel/Garments | On 21st May 2019

Australia, ILO work to raise Bangla working conditions

Australia and the International Labour Organisation (ILO) have...

Interviews View All

Nitin Bhatia, Trend Arrest

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Asim Dalal, Indo Count Retail Ventures

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Mohammad Mamun Ar Rashid, UL VS Bangladesh Ltd

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Maya Simova,

Maya Simova

Inter Expo and Congress Center (IEC) is a prominent exhibition centre in...

Siddhachakra Weaving (Badiya Fashion),

Siddhachakra Weaving (Badiya Fashion)

Ahmedabad-based Siddhachakra Weaving Pvt Ltd was established in 2011 under ...

Vasudevan LK,

Vasudevan LK

Epson is a world leader in digital imaging and printing solutions....

Kai Poehler, Voith Paper GmbH & Co. KG

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Kazuaki Yazawa, Purdue University

Kazuaki Yazawa
Purdue University

Scientist <b>Kazuaki Yazawa</b> has developed thermoelectric semiconductor ...

S Ziya Gumuser, Teknomelt

S Ziya Gumuser
Teknomelt

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Divvya and Nidhhi Gambhir, Walnut

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Cigdem Akin, Cigdem Akin

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search