Dhaka, May 29 -- The government may offer tax benefits to the local textile spinning mills on collection of waste cotton and jhut (clips) for production of recycled fibre in the upcoming budget for fiscal year 2023-24.

Currently, there is a 15 per cent VAT on supply and sales of cotton and jhuts. The government may propose 7.5 per cent VAT waive at the supply stage in the budget, sources said.

Industry insiders said the partial waiver may not help the sector flourish and tap the potentials.

Finance Minister AHM Mustofa Kamal may propose the waiver while placing the budget for FY 2023-24 on June 1, 2023.

The government may also phase out tax benefits on two sectors - ballpoint pen manufacturing and software development and customizatio...