Garment accessory makers demand 1pc cash incentive

Garment accessories and packaging makers have sought one per cent cash incentive against the deemed exports of accessories goods to ensure good business for the segment.

The Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association in a budget reaction on Sunday expressed its frustration as the proposed budget for 2021-22 fiscal year did not meet their demands.

Finance Minister AHM Mustafa Kamal placed a proposed budget of Tk 6,03,681 crore for 2021-22 fiscal year on June 3.

“We demanded 12 per cent corporate tax for the green factories while 15 per cent for other factories to recover from financial crisis in the wake of the pandemic. Though the government has proposed a business-friendly budget for the recovery of the economy, it has deprived us,” said BGAPMEA President Md Abdul Kader Khan.

In a statement, Kader said that the proposed budget ignored their demand to fix 10-12 per cent corporate tax like other export sectors. The tax has been proposed at 30 per cent from the existing 32.5 per cent.

“Although our sector is 100 per cent export-oriented, we did not get equal facilities like other direct and indirect exporters neither in national exporting policy nor in apparel and industry policies,” he added.

The association president also demanded to fix 0.25 per cent source tax from 0.5 per cent as the sector was affected vastly by the pandemic.