Even as Bangladesh’s National Board of Revenue or NBR currently collects Taka 3 in VAT on sales of 1kg cotton yarns and Taka 6 for non-cotton yarns, the Commerce Ministry has recommended the NBR fix Taka 3 as VAT on sales of 1 kg of yarn made from artificial and man-made fibres, a rate similar to which applies to cotton yarn sales in local markets.
Media reports maintained this adding sources at the NBR underlined they will review the matter in the next budget even as to meet growing local demand for non-cotton yarns, the Ministry finally sent the recommendation to NBR Chairman Abu Hena Md. Rahmatul Muneem for lowering VAT on non-cotton yarn sales.
Meanwhile, speaking to the media, local textile millers, reportedly, maintained equal VAT rate on all types of yarns will reduce discrimination and encourage local millers to produce non-cotton yarns.
This will help give a boost to investment and employment, they said.
