Syed Nurul Islam, Director of FBCCI and Bangladesh Textile Mills Affiliation Chairman and CEO of Nicely Team of Industry
The textile and garment business in the earth sector is divided into two elements. One particular element is dependent on fabrics made from organic fibers such as cotton yarn and the other from synthetic fibers this sort of as artifical fiber (polyester / nylon / viscose and so forth.).
Historically, the textile and garment sector of Bangladesh is dependent on natural fiber or cotton yarn. But a major change in the textile and garment sector in the environment industry has taken location in the previous 10 many years. That is, the textile and attire marketplace is now 60% occupied by materials manufactured of synthetic yarn or gentleman-produced fibers. And 30% cotton yarn.
We also have to transfer ahead keeping in intellect this transformation of the globe marketplace. For the very last 25-30 yrs, our cotton sector has been receiving plan aid from the government. Sadly, the polyester or manmade fiber sector has been neglected. I did not discuss the challenge significantly. Prior to the very last price range, I talked to the Commerce Minister and the NBR Chairman about the challenge with the President of BTMA. Even just after their promise, no gain was supplied in the funds for the manmade fiber dependent textile sector. Rather, the Hon’ble Key Minister gave his closing price range. In spite of the instruction to fix VAT on all styles of yarns at the identical amount of generation and sale, the gazette notification fixes VAT at the price of Tk. 4 for every kg on cotton yarn only and VAT on manufacturing and sales of Manmade fiber is at the price of TK 6. Which is not in line with the coverage of the govt and the directives of the Hon’ble Key Minister. Inspite of many attempts, I could not persuade the NBR to fix VAT at the very same fee of generation and product sales on cotton and polyester yarn.
The desire for materials and clothes built of manmade fiber or polyester yarn is raising in the environment market place. As a result, a new revolution in the textile and garment marketplace of Bangladesh will take place if this year’s budget provides for the withdrawal of all import responsibilities on all varieties of artifical fiber and polyester yarn and the provision of zero VAT at the output and income stage.
Everyone’s help is remarkably appealing.
HS codes for Manmade yarn are offered under.
- 5402.33. 00
- 5402.47. 00
- 5503.20. 00
- 5402.20. 00
- 5401.10. 00
- 5508. 10. 00
- 5509. 22. 00
- 5509. 21. 00