Extend policy aid to build BD as recycling hub Apparel exporters urge govt

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NBR's pre-budget parley​

Extend policy aid to build BD as recycling hub​

Apparel exporters urge govt​

FE REPORT

Local apparel exporters and textile mill owners, on Tuesday, urged the government to extend policy support to build Bangladesh as a recycling hub.

They said the country has potential to turn yarn waste worth US$5.0 million into resources worth $5.0 billion.

"Development partners and international buyers are willing to extend support in this area," said Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan in a pre-budget meeting with the National Board of Revenue (NBR).

Bangladesh Textile Mills Association (BTMA) President Mohammad Ali Khokon proposed to offer tax waiver to recycle yarn and produce man-made fiber.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Executive President Mohammad Hatem demanded reduction of source tax on apparel exporters to 0.5 per cent from the existing 1.0 per cent.
He also urged considering tax benefit on sub-contracting bills and fixed deposit receipt (FDR) - kept in banks as security deposit.

The BGMEA president proposed to allow exporters to enjoy authorised economic operator (AEO) status in a bid to expedite release of goods from ports.

He said the businesses would need some relief in tax measures, as they are crippled with multiple crises - including hike of gas and power prices.

"Apparel exporters are trying to reduce dependency on single products through diversifying the ready-made garment baskets."
The country may not be able to extend fiscal benefits after the graduation from LDC to a middle-income country in 2026. So the benefits should be offered as much as possible before that deadline, he added.

The BTMA president proposed to offer tax exemption on industrial chiller.

The BKMEA leader said the apparel exporters now have to go for manmade fiber production aggressively to expand export market.

BGMEA Vice-President Shahidullah Azim said the upcoming budget should be framed in an environment-friendly manner.

The apparel exporters also said harassments by bottom-level tax officials have to be checked for creating a business-friendly environment.

Speaking at the programme, NBR Chairman Abu Hena Md Rahmatul Muneem said the exporters have to accept several realities, such as high transportation cost and fuel price hike.
He hinted that they might have to accept tax hike too in the upcoming budget.

"We have a target to mobilise more internal revenue. So some realities, such as tax hike, have to be accepted by the industries."

Appreciating the recycling hub concept, the NBR chairman added that setting up recycling plants is a good idea for apparel industries in Bangladesh, but not for lubricant or battery industries.

NBR Member Dr Sams Uddin Ahmed said spoon-feeding cannot continue for a sector for unlimited period.

Once it builds strength to stand on its own feet, it must start paying tax, he added.
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Extend policy aid to build BD as recycling hub

Local apparel exporters and textile mill owners, on Tuesday, urged the government to extend policy support to build Bangladesh as a recycling hub. They said the country has potential to turn yarn waste worth US$5.0 million into resources worth $5.0 billion. "Development partners and int

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