The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has reiterated its demand for a 10% cash incentive on non-cotton garment exports in order to attract investment and boost export earnings.
During a post-budget press conference held in Dhaka city on Friday, BGMEA President Faruque Hassan described some proposed budgetary measures for the upcoming fiscal year as “positive” and made additional demands. These demands include fixing the source tax at 0.50 percent and maintaining this rate for the next five years.
“We are happy to see that the government has taken some positive steps for the garment industry in the upcoming budget. However, we still have some demands,” Hassan said.
He said the BGMEA demands a 10% cash incentive on non-cotton garment exports. “This will help us to attract investment and boost export earnings,” he said.
Hassan also said the BGMEA is demanding that the source tax be fixed at 0.50 percent and maintained for the next five years. “This will help us to reduce our production cost,” he said.
The BGMEA president further elaborated on optimistic measures proposed for the export-oriented industry in the fiscal year 2023-24. These measures include a 15% tax reduction on container imports for both export and import purposes, VAT exemption on cut and waste fabrics made of artificial fibers at the manufacturing level, amendments of the circular related to some product details, and inclusion of certain machinery parts in the HS code.
“We are hopeful that the government will consider our demands,” Hassan said.
The BGMEA is the apex trade body of readymade garment exporters in Bangladesh. It represents over 4,000 garment factories in the country.