BTMA Calls for Continued 30% Value Addition to Safeguard Domestic Textile Sector
The Bangladesh Textile Mills Association (BTMA) has called on the government to retain the existing 30% value-addition requirement for importing raw materials against bank guarantees, opposing a proposal to remove the provision in the FY2026-27 national budget.
Speaking at a press conference in Dhaka, BTMA officials warned that eliminating the requirement could lead to the misuse of bonded import facilities and create an uneven competitive environment for domestic textile manufacturers.
The association emphasized that the value-addition condition plays a crucial role in protecting local industries, maintaining export competitiveness, and supporting the textile sector as Bangladesh prepares for life beyond its Least Developed Country (LDC) status.
BTMA President Showkat Aziz Russell highlighted the growing challenges faced by the industry, noting that yarn imports reached Tk26,000 crore during FY2024-25 despite the country’s adequate domestic production capacity. He also revealed that 234 textile factories have shut down since 2019, while many of the remaining units are operating at only 60-70% of their installed capacity.
In addition to retaining the value-addition requirement, the association urged the government to reduce the corporate tax rate for textile manufacturers to 12%, withdraw the proposed 5% import duty on polyester staple fibre, and exempt export cash incentives from tax at source.
BTMA believes these measures are essential to strengthen Bangladesh’s textile industry, preserve employment, and enhance the sector’s global competitiveness in an increasingly challenging trade environment.