Textile millers demand import duty-free fibre

Rafikul Islam

Textile manufacturers on Sunday urged the government to provide duty-free import on all types of fibre used in making yarn for the potential growth of the non-cotton fashion industry to meet the global demand.

They also asked the government to fix Tk 3 as VAT on all kinds of yarn in the local market.

In the proposed budget, the government did not address this issue although the entrepreneurs of the country's primary textile sector have been demanding this a long time, the textile millers said at a post-budget press conference at the office of Bangladesh Textile Mills Association.

BTMA President Mohammad Ali Khokon said they proposed to fix the source tax deduction rate at 0.25 per cent, re-determine the tariff value of woven fabrics, and impose import duty on parts used in the textile sector at one per cent.

“We also requested to fix 50 per cent supplementary and regulatory duties to implement the proposal of re-determining tariff value of fibre,” he said.