Bangladesh's NBR withdraws advance income tax on import of fibres

This was a long-standing demand from domestic spinners and textile millers.

A government gazette notification said the exemption applies to raw cotton (carded, uncarded or combed), synthetic staple fibres and artificial fibres of various compositions, including polyester, acrylic and nylon, domestic media outlets reported.

The exemption covers HS codes ranging from 5201 to 5507, including raw cotton and synthetic fibres used in the spinning process.

Those who opposed the AIT said it raised the cost of doing business and disrupted the competitiveness of the export-oriented apparel industry.

The Bangladesh Textile Mills Association had long been lobbying for the removal of AIT on fibre imports, citing a mismatch between input tax and actual income, especially for companies in the export supply chain that already enjoy tax exemptions.

ALCHEMPro News Desk (DS)