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Bangladesh's NBR urged to withdraw VAT on clothing waste recycling

30 Apr '23

1 min read

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Bangladesh's commerce ministry recently urged the National Board of Revenue to withdraw the existing 22.5 per cent value added tax on clothing waste recycling business as the tax is hurting the sector's growth by raising the production cost of recycled yarn.
Recyclers now pay 7.5 per cent VAT at the collection stage and 15 per cent at the supply stage.

Bangladesh’s commerce ministry recently urged the National Board of Revenue (NBR) to withdraw the existing 22.5 per cent value added tax (VAT) on clothing waste recycling business as the tax is hurting the sector's growth by raising the production cost of recycled yarn.

The ministry wrote to the NBR requesting readymade garment (RMG) waste recyclers survive competition from imports following a meeting with stakeholders in the recycling sector, including the Bangladesh Textile Mills Association (BTMA), according to media reports in Bbangladesh.

Recyclers, which collect waste from garment factories and textile mills to be used by spinning mills, now pay 7.5 per cent VAT at the collection stage and 15 per cent at the supply stage.

Fibre2Fashion News Desk (DS)

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