Apparel makers demand duty-free import of all kinds of raw materials

Staff Correspondent | Published: 22:52, May 04,2021


The county’s apparel and textile makers have urged the government to allow duty-free import of all raw materials, including different types of fibres for the clothing sector.

Three trade bodies of the export-oriented garments and textile sector also requested the government to set 3 per cent value-added tax for all types of yarns and to reduce the import duty on the spares parts of capital machinery to 1 per cent in the next budget for the financial year 2021-22.

Bangladesh Textile Mills Association, Bangladesh Garment Manufacturers and Exporters Association and Bangladesh Knitwear Manufacturers and Exporters Association on Sunday made the demands in a letter to finance minister AHM Mustafa Kamal.

Demanding equal 3 per cent rate for the VAT on all kinds of yarns, the trade bodies said that the government should allow duty-free import of all types of fibres as different types of fibres with cotton are used in the primary textile sector to produce yarns.

Along wing cotton, viscose staple fibre, polyester staple fibre, tencel, modal, spandex, and pineapple fibres are used in the spinning mills as raw materials but the duty-free import is applicable only to cotton fibre, the letter said.

It also said that many other new variant of fibres would also be used in the coming days due to the buyers’ requirements and the government should extend duty-free import facility for all types of fibres.

The textile sector leaders in their letter demanded 1 per cent import duty on the spare parts which are used in spinning, fabric manufacturing and dyeing, printing and finishing mills.

The letter said that although the government allowed garment and textile sector to import capital machinery at 1 per cent duty but the import duty up to 104 per cent was imposed on the spares of the machinery.

Due to the high import duty on spare parts, garment and textile sector is losing its competitiveness, and the government shout allow the import at 1 per cent duty, the letter reads.

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