Garment makers in Bangladesh have called for a tax exemption in the next budget on the import of all types of fibres used in the spinning and textile mills even as they have demanded a 1 per cent duty on the import of spare parts used in apparel and textile factories.
According to reports, the trade bodies — the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the Bangladesh Textile Mills Association (BTMA) — jointly raised the demands with an aim to increase the production of non-cotton garment products to meet global challenges and tackle the pandemic crisis.
The trade bodies, reportedly, raised the demand in this direction, in a letter sent to the Finance Minister AHM Mustafa Kamal on 3 April (Monday).
It may be mentioned here that currently there is zero duty on imported cotton and 15 per cent duty on import of non-cotton fibre used as raw materials for the apparel industry although they pay 1 per cent duty on imported capital equipment and have to pay 28 per cent to 104 per cent tax on the import of spare parts.