Government reduced VAT on yarn from man-made fibre and other fibres from Tk6 per kg to Tk3 per kg.
Earlier, textile millers demanded the withdrawal of tax on the import of man-made fibre and reduction of VAT on the sale of the items in the local markets as the consumption of the artificial raw material is rising globally.
The textile millers of the country called for cutting the value-added tax by half on the sale of manmade fibre yarn to Tk3 from Tk6 per kilogram now, as they also pay Tk3 on the sale of cotton-made yarn, according to Bangladesh Textile Mills Association’s (BTMA’s) proposal on February 24 of this year.
The association submitted the proposals to the National Board of Revenue (NBR) to incorporate this in the budget for the upcoming fiscal year of 2022-23.