BTMA called for the removal of 7.5% VAT on waste RMG fabrics and 15% VAT on recycled fibres. It also demanded that the corporate tax rate for the textile industry remain unchanged until 2030.

Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association (BTMA), demanded that the existing corporate tax rate for the textile and garment industry be maintained.

He said that considering the importance of export earnings, the source tax rate applicable on exports from the textile and garment industry should be reduced to 0.50% from the previous 1%. The tax rate needs to remain in effect for the next 5 years. Because the textile and garment industry is currently facing many problems, including the dollar crisis, fuel supply not reaching the ideal level, and abnormal increase in interest rates.
He spoke about these in a written statement issued at a joint press conference held by GMEA and GMEA on the national budget proposal for fiscal year 2024-25 on Saturday (June 8).

GMEA President Khokon said that GMEA is an organization of the primary textile industry. We are working to consolidate the export trade of ready-made garments, diversify products, explore new markets and develop the textile and garment industry. The spinning, weaving and dyeing and finishing factories of GMEA also make a significant contribution by supplying yarn and fabric to the country's ready-made garment industry.

He said that we sat with the leaders of the three associations of the textile and garment industry. We believe that in order to increase the country's export trade to $100 billion, some measures must be taken in the textile and garment industry. As you know, the collection of garment waste (jhut) is subject to 7.5% VAT and the supply of fiber produced from it is subject to 15% VAT.
He said, according to our calculations, 1.2 billion kg of yarn can be produced every year from this jhut. That is why I strongly demand the removal of VAT from the industry.

Addressing the press conference, the BTMA chairman also urged the removal of 5% VAT on man-made fibres, 5% advance tax on melt fibres and waiver of 5% advance income tax and treating freezers as capital machinery and providing 1% import facility as before.

He also demanded zero duty import of components used in electronic trading platforms for textile mills and removal of 200% to 400% penalty for wrong HS code of imported products.