The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) – in the budget for FY25 – has sought policy support from the government, including the return of 0.50 per cent tax at source against exports, compared to the existing 1 per cent, for the next five years.
It has also sought the continuation of cash incentive over export earnings till 2029, as well as a tax reduction on cash incentives at 5 per cent, from the existing 10 per cent.
BGMEA President SM Mannan Kochi made these proposals while addressing a view-exchange with the journalists at a city hotel on Saturday.
BGMEA Vice President Abdulla Hil Rakib moderated the event, where former BGMEA president and Dhaka North City Corporation Mayor Atiqul Islam; former BGMEA president Abdus Salam Murshedy, MP; former BGMEA president and Awami League Industries and Commerce Secretary Siddiqur Rahman; and BGMEA board of directors were presented as well.
Mannan said, “The new BGMEA board is prioritising a number of issues, which include resolving RSC related complications, simplification of business, seeking continued cash incentives till 2029, providing alternative support, and taking bank and financial service related initiatives.
“We are working to introduce exit policy and export credit guarantee facilities, bringing the SMEs under special policy support and financing schemes, increasing competitive edge through automation and digitalisation, taking initiatives on products, and market diversification.”
The apex body also plans to introduce food rations and welfare for the workers, fix fair price of products and floor prices, formulate unified code of conduct, boost capacity of this industry for building environment-friendly factories, and provide special policy support for motivating investment in man-made fiber-based industry.
Highlighting BGMEA’s plans for the future, and to march forward steadily, Mannan also urged the government to keep various products and services related to RMG industry free from VAT, and provide tax rebate facility on fire safety equipment imports.
“We are optimistic that these recommendations will be reflected in the ensuing budget.”
Pointing out that Bangladesh’s apparel export target has been set at $100 billion by 2030, Mannan said, “It would not be possible to attain this export target unless government policy support is available.
“If all kinds of government support remain intact, then our RMG sector will be able to play a pioneering role in building Smart Bangladesh as envisioned by Prime Minister Sheikh Hasina, and a poverty-free Sonar Bangla as dreamt by Father of the Nation Bangabandhu Sheikh Mujibur Rahman.”
Mannan also vowed to reintroduce the BGMEA's journalism fellowship, sought government interventions in resolving customs, VAT and bond related complexities at the National Board of Revenue (NBR), listed various steps in diversification of product and market.
He sought the government's attention in addressing the power and energy crisis, as well as addressing the complexities on HS code and on the weight of woven fabric, not giving gas and power connections to industries outside the industrial areas.
The BGMEA president said they have already urged the government to bring people who disrupt export operations, harass exporters, and cause harm to the country's economy, under the purview of law.
