Zero tariffs for raw materials for synthetic fabrics

Bangladesh seeks the zero tariff on importing raw materials for manufacturing non-cotton textile items. Presently, Bangladesh imports almost all non-cotton items and investment in setting up factories to produce such items has been very slow due to discouraging tax measures by the Government.

In the 2007-08, 10% duty and 15% VAT (value added tax) on import of raw materials, including polyester staple fibre, viscose staple fibre, acrylic staple fibre and pet-chips, were imposed, while such import was tax-free previously.

Sources in the knit sector said more than 50% items are now produced by yarn made from non-cotton items.

Chairman of the Prime Group of Industries M A Awal said that Bangladesh produces around 10% of the total textile production from non-cotton items. It is possible to add more value to production of non-cotton items compared with those of cotton items.