Bangladesh considers VAT exception for recycled fibres

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DHAKA – The Bangladesh government is said to be considering a tax exemption for domestically-produced recycled fibre in a bid to promote the sector and reduce the textile industry’s dependence on imports of cotton.

Under the current rules, textile traders pay 7.5% valued‑added tax (VAT) on the purchase of domestically-collected recycled fibres and then pay an additional 15% at the point of sale.

Piles of textiles packaged up in bales waiting to be recycled.

DHAKA – The Bangladesh government is said to be considering a tax exemption for domestically-produced recycled fibre in a bid to promote the sector and reduce the textile industry’s dependence on imports of cotton.

Under the current rules, textile traders pay 7.5% valued‑added tax (VAT) on the purchase of domestically-collected recycled fibres and then pay an additional 15% at the point of sale.

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