BGMEA wants policy-support in the budget

Bangladesh Garment Manufacturers and Exporters Association (BGMAEA) is seeking several policy support from the government in order to maintain competitiveness in the next budget, including reducing tax at source against exports in the garment industry, reducing income tax on cash assistance, keeping various products and services VAT-free.

BGMEA President SM Mannan Kochi said these things in an exchange meeting with journalists at Pan Pacific Sonargaon Hotel in the capital on Saturday (June 1).

BGMEA president said in a written statement, “We have aimed to export 100 billion dollars from the garment industry by 2030.” We need the government's policy support to achieve this goal. For this reason, in the next budget we will reduce the tax at source against exports from 1 percent to 0.50 percent as before, income tax deduction rate on cash assistance will be reduced from 10 percent to 5 percent, income tax on ERQ will be reduced from 20 percent to 10 percent, and the incentive will continue till 2029. I have recommended

He also said that various products and services required for the ready-made garment sector should be kept free of VAT, tax concessions on the import of fire and safety equipment, giving the opportunity to import at subsidized rates to replace these products if they are damaged or destroyed, allocating special funds for food rationing for workers, etc. – BGMEA has also recommended to the government to provide assistance in export and investment in cotton garments. The BGMEA president believes that these recommendations will be reflected in the next budget.

SM Mannan Kochi said, the government is managing the economy very prudently, for which we are getting praise internationally. We expect the government to continue all cooperation with the industry. But if the cooperation is stopped for any reason, we will lose competitive ability, investment will be hindered.

He also said that our share in the world market is only 7.87 percent. That is, the opportunity before us is immense. If the government's cooperation continues, our garment sector will play a leading role in building the poverty-free Sonar Bangla of Bangabandhu's dream and the smart Bangladesh of the Prime Minister's vision.

At that time, the mayor of Dhaka North City Corporation and former president of BGMEA, Atiqul Islam, former president of BGMEA, Abdus Salam Murshedi, adviser on industry and commerce of Awami League and former president of BGMEA. Siddiqur Rahman and the present members of the Board of Directors were present.

Bangladesh /FM