Bangladesh Cuts Tariffs To Save Textile Companies

With the reduction of import tax on capital machinery and components and the introduction of a 1% handling fee, Bangladesh imported 4 billion 500 million Tucker textile machinery in July.

Instead of the early margin system, the Bangladesh government cut the import tax on capital machinery from 5% to 3%, which greatly relieved the textile industry.

Bangladesh Textile Mills Association (BTMA) said that in July, Bangladesh imported 175 machines, 90% of which were imported from spinning factories.

The reform of procedural policies and import tariffs has contributed immense to the growth of machinery imports. The vast majority of machinery is purchased by new industrial units, which are built to meet international demand for local textile products.

For example, the Norman group decided to establish a new dyeing, weaving, spinning and garment unit, as well as a fashion institution.

Similarly, many other enterprises imported machinery to support their expansion plans, especially because the appreciation of the RMB exchange rate with the US dollar has brought new opportunities to domestic industrialists in Bangladesh.

Bangladesh imports most of its machinery into backward merging units, which, in turn, will help the garment and garment sectors in shock, and most of the raw materials of the Bangladesh clothing and clothing sector come from China.

The sub department of knitting obtained 80% of raw materials from the local market, while the secondary Department of weaving only got 40% of the demand from the local market.

In addition, 70% of total capital machinery imports were reported to have been purchased by the textile and garment industries. If the government can ensure a stable natural gas and power industry, the number will increase significantly.