Bangladesh Textile Sector Seeks Tax Cut to 10% And Loan Waivers

Bangladesh’s textile industry has sought urgent fiscal relief ahead of the national budget, with the Bangladesh Textile Mills Association (BTMA) proposing a cut in income tax for primary textile mills from 27.5% to 10% until 2030. The association said rising energy costs, supply disruptions, high interest rates and import competition have severely impacted the sector, with over 200 mills reportedly shut and many operating at reduced capacity.

Separately, the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has requested waiver of Tk 420 crore in bank loans for 50 struggling factories, citing weak global competitiveness and financial distress. Both associations said immediate policy support is critical to restore stability, protect jobs and sustain Bangladesh’s position in the global textile and apparel supply chain.