Existing tax measures on the collection of plastic waste seem contradictory to the government's stance to curb environmental pollution, speakers said during a dialogue organised by Business Initiative Leading Development in the capital.
Currently, a Value Added Tax (VAT) is imposed on the collection of plastic wastes while recycling is subject to paying taxes in advance.
Ferdous Ara Begum, chief executive officer of BUILD, presented the keynote paper at the dialogue on "Domestic policy dynamics around plastic-to-textile value chain in Bangladesh".
In the welcome speech, she spoke on Bangladesh's potential to capture the growing market for man-made fibre and recycled plastic textiles.
Dr. Patrick Schröder, senior research fellow at Chatham House, Shamim Ahmed, president of Bangladesh Plastic Goods Manufacturers and Exporters Association, Abu Monjoor Sayeef, deputy general manager of SME Foundation, Abu Mukhles Alamgir Hossain, director, Export Promotion Bureau, Mohammad Nurul Aalam, vice president of BPGMEA, Ragib Ibnul Asif, deputy director, Sustainable finance department, Bangladesh Bank, Sultana Akter, deputy secretary, export wing Ministry of Commerce attended the programme as panelists.
Anwar-ul Alam Chowdhury, president of Bangladesh Chamber of Industries (BCI), attended the programme as the chief guest, while Asif Ibrahim, founder chairperson of BUILD was the special guest.
Speaking at the programme, Mr Chowdhury said buyers are talking about ethical sourcing, but not on ethical pricing.
Most of the countries have been offering tax holidays or other fiscal incentives to encourage the recycling industry which is absent in Bangladesh, he added.
He suggested amending customs rules to sell wastage and deliver authentic data on plastic waste.
Mr Ibrahim recommended adopting green taxation, addressing policy dynamics, and regulatory measures to make an efficient plastic-to-textile value chain.
Dr Partick said countries in the global treaty on plastic pollution have failed to come into consensus in the last two years on their doable.
On VAT and taxes, Ruhul Hossain, head of Business Development at MUMANU Polyester Industries, said the recycling industries are mopping out wastages like municipalities and the government has imposed taxes on them.
Mr Nurul Alam said most of the plastic wastes are being recycled to different products rather than polluting the environment.
"Bangladesh perhaps has the highest numbers of recyclers of plastic. Textile industries can meet its demands for raw materials," he said, demanding separate industrial zones for the recycling industries.
Mr Shamim Ahmed suggested the government withdraw permission for scrap imports dumped by other countries.
Abu Monjoor Sayeef of SME foundation said the plastic industry will continue to grow and cannot be replaced so the country needs to make best use of it by adopting a 'zero-waste cluster'.
Mr Hossain, director of EPB, said the existing duty-drawback system is a cumbersome one affecting exporters.
"We have suggested a partial bonded warehouse facility instead of duty-drawback facility," he added.
Bangladesh has been recycling plastic wastes in an effective way and has applied for carbon credit too, he added.
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