Bangladesh Textile Mills Association (BTMA) has urged the government to retain the existing 30 percent value-addition requirement for importing garment raw materials, warning that its withdrawal could seriously affect the country’s primary textile sector.
Speaking at a post-budget press conference in Dhaka, BTMA President Showkat Aziz Russell said removing the condition would encourage greater imports of yarn and other raw materials, reducing demand for locally produced products and increasing the risk of misuse of bonded facilities.
Russell noted that Bangladesh’s primary textile industry has attracted around $23 billion in investment and plays a vital role in supporting the country’s apparel exports. He stressed that maintaining the value-addition rule is essential for strengthening backward linkage industries and preparing for Bangladesh’s post-LDC graduation challenges.
According to BTMA, more than 230 textile factories, including over 150 spinning mills, have shut down since 2019, while many of the remaining mills are operating at only 60-70 percent capacity due to energy shortages and rising imports of lower-priced yarn.
The association also called for a reduction in the corporate tax rate for the primary textile sector and urged the withdrawal of the proposed import duty on polyester staple fibre to boost competitiveness and encourage investment.
