BTMA opposes withdrawal of 30% value-addition condition on raw material imports against bank guarantees
BTMA President Showkat Aziz Russell said yarn worth Tk26,000 crore was imported in FY2024-25 despite local production capacity
The Bangladesh Textile Mills Association (BTMA) has opposed a proposal in the proposed FY2026-27 budget to withdraw the existing 30% value-addition condition for importing raw materials against bank guarantees.
At a press conference at Gulshan Club in the capital today (20 June), the association said removing the condition will increase misuse of bond facilities and unfair competition in the market, hurting the domestic textile industry.
The BTMA said retaining the 30% value-addition condition is necessary to maintain export capacity after Bangladesh's LDC graduation and protect local industries.
Keep updated, follow The Business Standard's Google news channel
BTMA President Showkat Aziz Russell said yarn worth Tk26,000 crore was imported in FY2024-25 despite local production capacity.
Since 2019, some 234 textile factories have shut down, while many factories are operating at only 60-70% of their production capacity, he added.
The association also demanded the government reduce the corporate tax rate for the textile sector to 12%, withdraw the proposed 5% duty on polyester staple fibre imports, and fully waive tax at source on export cash incentives.
