Bangladesh Textile Mills Association gurus have asked the government to ban the export of all types of garment waste, including cotton, because of this waste in the raw material for the recycled fibre in the textile industry.
They reminded the government that textile recycling has the support of all developed economies and recycled apparel is preferred by global brands. They said the availability of used textiles should be facilitated. They also demanded the withdrawal of 7.5 percent VAT on sourcing raw materials and 15 percent VAT on supplying recycled fiber to the spinning mills.
Around 20 recycled fibre factories across Bangladesh are producing 24,00,000 tonnes of recycled fibre annually. They produce this fiber by using a garment that is wasted as raw materials. Some large mills have invested up to $50 million in recycling technology. They supply recycled fiber to spinners for producing yarn. The products made from that yarn are exported. They feel that VAT on these local supplies is unjust.
Textile millers import raw cotton duty-free and the raw materials the recycling units use are the waste of textiles and garments. These wastes are recycled into fibre, then turned into cotton and yarn, and fabrics and finished garments are produced from recycled cotton.
Industry experts pointed out that the use of recycled fibre would save the government foreign exchange worth $1 billion annually as it will reduce the import of fibers.
