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DHAKA - The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is urging the government to incentivise the country's textile mills to recycle fabric scraps from garment production into yarn for export garments.

BGMEA President Faruque Hassan said that recycling scrap fabric in Bangladesh, which is the world's second biggest garment manufacturer, could be a US$5 billion per annum industry for the country.

However, he said that textile mills should be exempted from paying VAT on scrap fabric to give them an incentive to invest in setting up the necessary infrastructure.

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