- Government considering VAT exemption for locally produced recycled fibre and raw materials
- Bangladesh Trade and Tariff Commission proposed full VAT waiver for domestic producers
- Currently, traders pay 7.5% VAT on locally collected clips or fibres and 15% VAT at point of sale
- 23 companies involved in textile waste recycling process with combined production capacity of 0.22 million tonnes
- Local textile waste generation estimated at 0.57 million tonnes, could reduce virgin cotton import costs by $1.0 billion
- Use of recycled fibres increasing as alternative to virgin cotton, driven by demand from global brands
- EU mandates use of at least 30% recycled fibres in garment products from 2025
- Local recycled fibre producers believe they can reduce country’s dependence on cotton imports
- Double taxation on recycled fibre production pushing up costs, government working on issue
Source: thefinancialexpress.com.bd
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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