Home textile and terry towel manufacturers asked on Monday that yarn be imported at a reduced tax rate in order to maintain the industry competitive on the global market.
The Bangladesh Terry Towel and Linen Manufacturers and Exporters Association wrote separate letters to the commerce ministry, finance ministry, and National Board of Revenue, requesting that imports of yarn count 6s-20s be taxed at a lower rate in order to keep export orders.
The BTTLMEA stated in its letter that export earnings from the country’s home textile sector stood at $1.16 billion in the fiscal year 2020-21, representing a 49% increase, but that the export sector is now experiencing difficulties due to higher yarn prices than items produced in India and Pakistan.
According to the trade association, home textile and terry towel manufacturers are totally reliant on local yarn, but local mills have failed to deliver yarn by the export deadline.
‘If the government allows the import of yarn at a lower tax rate, we will be able to collect the item at cheaper rates from India and Pakistan, which would help us enhance our competitiveness in export markets,’ M Shahadat Hossain, chairman of the BTTLMEA, told New Age on Monday.
