Duty cut on textiles' raw materials; tariff hike for finished fabrics to protect local industry
Industry insiders, however, said their demand was not reflected in the budget as the waiver included the least-used categories, leaving out most-used fibres from their list of 27
In a bid to help local textile industries diversify their export basket, the government will now offer a 1% import duty on 18 types of non-cotton fibre, down from 10-31%.
"As per the recommendation of Bangladesh Textile Mills Association [BTMA], I propose to include some raw materials related to the import of machinery, spare parts and raw materials for the textile industry," said Finance Minister Abul Hassan Mahmood Ali during the budget speech today (6 June).
Industry insiders, however, said their demand was not reflected in the budget as the waiver included the least-used categories, leaving out most-used fibres from their list of 27.
Keep updated, follow The Business Standard's Google news channel
"We welcome the inclusion of some non-cotton fibre in the list of raw materials with reduced import duty. However, the rest should also be included if we want to diversify our export basket," said Mohammad Ali Khokon, president of the BTMA.
During his budget speech, the finance minister proposed increasing the minimum value of imported cotton from $3 to $4 per kg.
He also proposed increasing the minimum value of imported polyester and synthetic fabrics from $3 to $4.5 per kg.
