Textile businesses seek VAT exemption on local yarn

Bangla Tribune Desk
Published : 17:15, Jun 19, 2019 | Updated : 17:39, Jun 19, 2019

A textile mill in Gazipur in action. Although yarn manufacturers made huge stride to meet fabric demand of export-oriented apparel industries, they now face existential threat due to surging price fall in recent months. Photo: Dhaka TribuneThe Bangladesh Textile Mills Association (BTMA) urged the government to exempt local yarn from a 5% value-added tax (VAT); so that it maintains a competitive market price.

Expressing deep concern about the move, BTMA President Mohammad Ali Khokon called for this at a press conference on the proposed budget for the fiscal year 2019-20 at Dhaka hotel on Wednesday (Jun 19).
In the proposed budget, the government recommended a 5% VAT tax on polyester, tencil, and viscose; which will increase the prices of yarn, the BTMA claimed.
The BTMA also urged the government to withdraw a 5% Advance Tax (AT) on the import of textile machinery, spare parts, and other elements; as it would increase the cost of doing business.