Hailing the proposed budget for the upcoming fiscal year 2021-22, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government to review some of its proposals including 10 per cent cash incentive for non-cotton-based garment exports.
The apparel apex body also demanded continuation of existing 0.5 per cent source tax for the next five years.
BGMEA, however, said the proposed budget didn't reflect some of the measures, it requested earlier, for the turnaround of the garment industry and creation of employments.
"Bangladesh has a huge opportunity for grabbing the global market of non-cotton based readymade garment (RMG) exports as the demands for such items have been increasing over the years," BGMEA president Faruque Hassan said while addressing a post-budget press conference held at its headquarters at Uttara in the city on Saturday.
BGMEA vice presidents and other office bearers were also present at the press conference.
The world consumption of non-cotton based textile items is 75 per cent and the demand is increasing by 3.0-4.0 per cent annually, he said, adding that on the other hand, the annual demand for cotton items is rising by 1.0-2.0 per cent.
In contrast, about 74 per cent of Bangladesh's RMG exports are cotton based, he said. "We want a win-win market share. We will be champion in cotton-based items while also raise exports of non-cotton items."
Bangladesh has already set up its capacity with the installation of machinery in non-cotton RMG items manufacturing while fabric is also available, the BGMEA chief said, adding that now the country needs to be competitive in this segment.
Government's support can help increase the competitiveness in such manmade textile manufacturing and raise the global market share.
"We have opportunity to create new employments, attract new investments and thus increase the overall RMG exports," he said, demanding a 10 per cent cash incentive on non-cotton garment exports.
The BGMEA president also welcomed the government's proposals to continue existing budgetary measures for the sector including additional 1.0 per cent cash incentive.
Praising many of the proposed fiscal measures, Mr Hassan termed the proposed budget business-friendly.
His other demands included withdrawal of 10 per cent tax on cash incentive, increasing incentive to 5.0 per cent from existing 4.0 per cent for exports to non-traditional markets and extension of the stimulus loan repayment duration.
BGMEA also urged the government to extend the SME loan limit up to $10 million from existing $5.0 million to help small and medium enterprises survive from the fallout of Covid-19.