DHAKA, June 5, 2021 (BSS) – Hailing the proposed budget for FY22, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) today urged the government to continue the existing 0.5 per cent source tax for the next five years.
The apparel apex body also demanded of the government to review some of its proposals including 10 per cent cash incentive for non-cotton based garment exports.
The BGMEA, however, said the proposed budget did not reflect fully some of the measures, it requested earlier, for the turnaround of the industry and creation of employment.
“Bangladesh has huge opportunity in grabbing the global market for non-cotton based readymade garment (RMG) exports as the demand for such items have been increasing over the years,” said BGMEA president Faruque Hassan.
He said this while addressing a post-budget press conference held today at its headquarters in Uttara in the city. BGMEA vice presidents and other office bearers were also present at the conference.
“The world consumption of non-cotton based textile items is 75 per cent and the demand is increasing 3.0-4.0 per cent annually,” he said adding on the other hand the annual demand for cotton items is raising 1.0-2.0 per cent.
In contrast, about 74 per cent of Bangladesh RMG exports is cotton based, he said adding “We want a win-win market share, we will be champion in cotton based items while also raise non-cotton items exports.”
Faruque said Bangladesh has already set up its capacity with installation of machinery in non-cotton RMG items manufacturing while fabric is also available. “Now the country needs to be competitive in this segment,”
He said the Government’s support can help increasing the competitiveness in such manmade textile manufacturing and raise the global market share.
“We have opportunity to create fresh employments, attract new investment and thus increase the overall RMG exports,” he said demanding a 10 per cent cash incentive on non-cotton garment exports.
The BGMEA president welcomed the government’s proposals to continue existing budgetary measures for the sector including the additional 1.0 per cent cash incentive.
Lauding many of the proposed fiscal measures, Faruque termed the proposed budget business-friendly.
The BGMEA’s other demands included withdrawal of 10 per cent tax on cash incentive, increasing the existing incentive to 5.0 per cent from existing 4.0 per cent for exports to non-traditional markets and extend the stimulus loan repayment duration.
The BGMEA also urged the government to extend the SME loan limit up to $10 million from existing $5.0 million to help the small and medium enterprises survive from the fallout of Covid-19.