Textile News, Apparel News, RMG News, Fashion Trends
Spinning Trade & Business

BTMA urges tax cut on imported of manmade fibers in 2022-23 budget

Bangladesh Textile Mills Association (BTMA) recently pressed the government for the removal of tax on the import of man-made fiber (MMF) and decrease of VAT on the trades of the MMF in the domestic markets. As the consumption of artificial raw material is rising globally, says BTMA.

Figure 1: BTMA President Mohammad Ali Khokon along with other industry leaders met Abu Hena Md Rahmatul Muneem, Chairman, NBR to submit the demands.

At present, textile spinners can get duty-free imports in only 4 types of man-made fiber after receiving certification from BTMA. Whereas, millers import 21 more ranges of MMF after paying taxes.

Recently, BTMA President Mohammad Ali Khokon met Abu Hena Md Rahmatul Muneem, Chairman of the National Board of Revenue (NBR) – and submitted the proposals to NBR for incorporation in the budget for the upcoming fiscal year of 2022-23 – at the NBR’s office in Dhaka.

Figure 2: BTMA proposals.

Khokon also demanded reducing value-added tax on the sale of per kg MMF yarn to BDT3 from BDT6 now as textile millers also pay BDT3 on the sale of cotton yarn.

The textile millers also pleaded with the govt. to set 1% import duty on spare parts for textile mills.

BTMA said, “The govt. should also continue the 15% income tax on textile production up to 2030.”

BTMA President also urged the govt. to withdraw imposed 2% tax on buying cotton from the domestic markets as spinners turn to the local market during any scarcity.

The BTMA recommended removing the 15% VAT on the sales of pet chip textile as the use of synthetic fiber and yarn is growing in Bangladesh.

Figure 3: BTMA and NBR meeting.

Abu Hena said, “We are aware of the issues and the problems faced by the textile sector. And we will consider the above issues with high emphasis.”

Abdullah Al Mamun, Vice President, BTMA said to Textile Today, “We demanded a common duty on all types man-made fiber. NBR Chairman assured us of looking after the matters.”

“Besides, we have also forwarded our demands to the Ministry of Commerce, Ministry of Finance and Ministry of industries,” Abdullah Al Mamun added.

Among others, Abdullah Al Mamun, Vice President, BTMA; Md. Saleudh Zaman Khan, Director, BTMA; Syed Nurul Islam, Director, BTMA; Khorshed Alam, Chairman, Little Group & Former Director, BTMA.

Anwar-Ul-Alam Chowdhury (Parvez), Chairman, Bangladesh Chamber of Industries (BCI) & Former President, Bangladesh Garments Manufacturer & Exporter Association (BGMEA) attended the meeting as a special invitee.

Monsoor Ahmed, Additional Director & CEO (In-Charge), BTMA, Ali Ahmed, Deputy Secretary, BTMA were also present in the meeting.

Mohammad Hatem, Executive Chairman, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) along with his team also attended the meeting. BKMEA agreed with the proposals made by BTMA and gave full support.

If anyone has any feedback or input regarding the published news, please contact: info@textiletoday.com.bd

Related posts

Five leaders from BTMA receive CIP status

Textile Today

BTMA urges imposing duty on dumped Indian yarn

Textile Today

BTMA urges to raise EDF loan cap by December 2022

Nurnahar Akter Tania

Latest Publications

View All