NBR withdraws advance tax on imports of cotton, man-made fibres

The National Board of Revenue (NBR) has rolled back the recently imposed 2% advance income tax (AIT) on imports of cotton and man-made fibers used by Bangladesh's garment industry. The National Board of Revenue (NBR) has eliminated the recent 2% advance income tax (AIT) on imports of cotton and synthetic fibers used by Bangladesh's garment industry. Following significant pressure from industry stakeholders, this reversal was made.

According to a gazette published today (17 July), the exemption, which is effective immediately, is only applicable to holders of industrial Import Registration Certificates (IRCs). This change will not help commercial importers.

The 2% AIT, which targets more than 150 imported raw materials, including cotton and synthetic fibers, was included in the current budget and went into effect on July 1. In the fiscal year, the NBR had anticipated earning an extra Tk900 crore from these items.

About 99 percent of the cotton used in Bangladesh's domestic and export clothing production is imported. The Bangladesh Textile Mills Association (BTMA) reports that the nation imported 83.21 lakh bales of cotton in 2024.

Source: https://www.tbsnews.net/