Garment and textile businesses in Bangladesh have made a significant push to import apparel and textile waste, including clippings, without duties, to bolster the production of recycled fibers.
In addition to duty-free imports, these businesses are seeking exemptions from the 7.5 per cent value-added tax (VAT) on raw material sourcing for recycled fiber production and the 15 per cent VAT on the purchase of these fibers by spinning mills. Furthermore, they propose the adoption of a Harmonised System (HS) for imports, a standardised method used globally for classifying traded products.
Presented by Faruque Hassan, President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), during a pre-budget meeting with the National Board of Revenue (NBR), these proposals are geared towards sustaining apparel exports and enhancing the country's competitiveness in the global market.
Both the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the Bangladesh Textile Mills Association (BTMA) echoed similar demands.
Reiterating on the need to support recycling initiatives, Abu Hena Md Rahmatul Muneem, Chairman, NBR, emphasised on the importance of backing recycling industries such as garment scrap and plastic to mitigate environmental impact.
However, he voiced concerns about potential misuse of the benefits, highlighting instances where privileges intended for industries were exploited due to inadequate mechanisms for detection. He emphasised on the need for stronger monitoring to prevent revenue losses for the state.
