The Bangladesh Textile Mills Association (BTMA) has opposed a proposal in Bangladesh’s FY2026-27 budget to remove the existing 30% value-addition requirement for importing raw materials against bank guarantees.
Speaking at a press conference in Dhaka BTMA said eliminating the condition could lead to increased misuse of bond facilities and create unfair competition, adversely affecting the country’s domestic textile industry.
The association stressed that retaining the 30% value-addition requirement is essential to safeguard local manufacturers, sustain export competitiveness, and support the sector following Bangladesh’s graduation from Least Developed Country (LDC) status.
BTMA President Showkat Aziz Russell said “yarn imports reached Tk26,000 crore in FY2024-25 despite sufficient domestic production capacity”.
He added that 234 textile factories have closed since 2019, while many operational units are currently running at only 60-70% of their installed capacity.
The association also urged the government to reduce the corporate tax rate for the textile sector to 12%, withdraw the proposed 5% import duty on polyester staple fibre, and fully exempt export cash incentives from tax at source.
Bharat Tex Special Report 2026 
