No decision as finance ministry meets stakeholders on duty-free yarn imports

The finance ministry today held a meeting with textile millers and knitwear makers to resolve the stalemate regarding the removal of the duty-free benefit on yarn imports.

The meeting ended without any decision, millers said.

The finance ministry convened the meeting as garment, knitwear makers and spinners remain at loggerheads over duty-free imports of 10 to 30 count cotton yarn, a medium-to-coarse thickness range widely used in knitwear manufacturing, where a higher count indicates lower thickness.

Textile millers have been demanding the removal of the duty-free benefit on yarn imports to protect spinners from cheaper yarns imported from India.

After the meeting, BTMA President Showkat Aziz Russell said the finance ministry avoided taking a decision by seeking 10 more working days.

After this period, the current government may not be able to take a decision as a new government will come to power, with the national election scheduled to be held on February 12.

As a result, millers may need to consult the new government on the matter, Russell said.

At today’s meeting, Bangladesh Knitwear Manufacturers Association President Mohammad Hatem, the administrator of the Federation of Bangladesh Chambers of Commerce and Industry Abdur Rahim Khan, and the chairman of the National Board of Revenue Abdur Rahman Khan were present. Finance Secretary Md Khairuzzaman Mozumder chaired the meeting.

Earlier today, BGMEA leaders met the finance secretary to request the release of cash incentive funds, as the government has not released such payments for the last 10 months.

Manufacturers and Exporters Association (BGMEA) Director Faisal Samad said the finance secretary assured them that the government would release nearly Tk 3,000 crore out of the Tk 5,000 crore outstanding.