Syed Nurul Islam, Director of FBCCI and Bangladesh Textile Mills Association; Chairman and CEO of Well Group of Industry
The textile and garment industry in the world market is divided into two parts. One part is dependent on fabrics made from natural fibers such as cotton yarn and the other from synthetic fibers such as manmade fiber (polyester / nylon / viscose etc.).
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 world market has taken place in the last 10 years. That is, the textile and apparel market is now 60% occupied by fabrics made of synthetic yarn or man-made fibers. And 30% cotton yarn.
We also have to move forward keeping in mind this transformation of the world market. For the last 25-30 years, our cotton sector has been receiving policy support from the government. Unfortunately, the polyester or manmade fiber sector has been neglected. I did not discuss the issue much. Before the last budget, I talked to the Commerce Minister and the NBR Chairman about the issue with the President of BTMA. Even after their promise, no benefit was given in the budget for the manmade fiber dependent textile sector. Instead, the Hon’ble Prime Minister gave his final budget. In spite of the instruction to fix VAT on all types of yarns at the same rate of production and sale, the gazette notification fixes VAT at the rate of Tk. 4 per kg on cotton yarn only and VAT on production and sales of Manmade fiber is at the rate of TK 6. Which is not in line with the policy of the government and the directives of the Hon’ble Prime Minister. Despite many attempts, I could not persuade the NBR to fix VAT at the same rate of production and sales on cotton and polyester yarn.
The demand for fabrics and garments made of manmade fiber or polyester yarn is increasing in the world market. Therefore, a new revolution in the textile and garment industry of Bangladesh will take place if this year’s budget provides for the withdrawal of all import duties on all types of manmade fiber and polyester yarn and the provision of zero VAT at the production and sales stage.
Everyone’s help is highly desirable.
HS codes for Manmade yarn are given below.
- 5402.33. 00
- 5402.47. 00
- 5503.20. 00
- 5402.20. 00
- 5401.10. 00
- 5508. 10. 00
- 5509. 22. 00
- 5509. 21. 00