Bangladesh considers tax relief for clothing waste recycling to boost industry growth.
The Ministry of Commerce (MoC) in Bangladesh has recommended that the existing 22.5% value-added tax (VAT) on clothing waste recycling businesses be withdrawn, as the tax is impacting the sector's growth. Currently, local recyclers collect waste from garment factories and textile mills to prepare them for use by spinning mills, but they have to pay 7.5% VAT at the collection stage and 15% at the supply stage of their products.
The raw materials used by the recycling mills are waste collected from local textile and garment industries and are recycled into yarn and fabric, which are then converted into garments for export.
The Ministry of Commerce (MoC) has recommended the revenue board to withdraw the existing 22.5 per cent value added tax (VAT) on clothing waste recycling business as the sector's growth is being affected due to the tax.
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