The Bangladesh Textile Mills Association (BTMA) has welcomed the proposed 2026–27 national budget for emphasizing investment, production, employment, export capacity, and business facilitation. The association said that measures such as protection for local industries, improved competitiveness, tariff restructuring, and incentives for renewable energy send positive signals for the primary textile sector.

According to BTMA, several of its proposals were partially reflected in the budget. These include reducing advance income tax on export cash incentives from 10 to 5 percent, lowering taxes on recycled products and raw materials, cutting source tax on cotton supply, exempting duties on solar power equipment imports, and maintaining benefits for importing chemicals used in effluent treatment plants. The association also viewed legal provisions for free trade zones and initiatives to reopen closed mills as positive steps.

However, BTMA expressed concern over the proposal to withdraw the 30 percent value addition requirement for raw material imports under bank guarantees, warning of potential misuse and harm to domestic industries. It urged for a 15 percent corporate tax rate, stable tax policy, and investment-friendly reforms to address challenges such as high energy costs, supply uncertainty, and volatile raw material prices.