No clear directions for RMG
রবিবার, জুন ১১, ২০২৩
The BGMEA has said the proposed national budget doesn’t have any specific details on the measures for the garment sector.
Speaking at a press conference in the capital yesterday, BGMEA President Faruque Hassan said the previous budget proposals contained details about the incentives and other measures for the sector.
Many RMG factories are running below capacity because of frequent power cuts and inadequate supply of gas, he said.
Due to these two problems and the recent fall in apparel export, the government projection that private investment would account for 27.4 percent of the GDP may not materialize, Faruque said replying to a question from a journalist.
If the government can meet the demand for gas and power, and continue its support for the sector, the country may be able to attract a handsome amount of investment and a good number of jobs may be created, he said.
The chief of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said he was hopeful about the proposed budget.
He said he would be able to say more specifically on the budgetary measures after the proposed budget is passed by parliament on June 26.
Faruque said the government would be able to collect more tax from the apparel sector if the customs rules of the National Board of Revenue were more business-friendly.
The BGMEA chief said the existing facilities for the sector should remain unchanged so that the RMG exporters can boost their exports during the crisis stemming from high inflation and the Russia-Ukraine war.
He demanded the government cut the tax at source on exports to 0.50 percent from 1.0 percent for the next five years.
Faruque also pressed the government for 10 percent cash incentive on exports of garments made from non-cotton fiber so that businesses can grab more global market share.
He also demanded the withdrawal of all kinds of taxes on solar panels and recycled yarn and fabrics so that businesses can have more market share of these types of products.
The government should not impose 10 percent tax on receipts of cash incentives on export earnings, he observed.