BGMEA seeks cuts in source tax, continuation of cash incentive until 2029

The apex apparel body - BGMEA - on Saturday made a number of demands to the government including reducing source tax, continuation of cash incentive until 2029 and measures to stop customs-related harassment to help achieve US$100 billion export earnings target.  

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) also demanded business-friendly, harassment-free, speedy and easy export-import procedures for the sake of locally made readymade garment exports.

BGMEA president SM Mannan Kochi made the pleas at a view exchange meeting held at a hotel in the capital city. The BGMEA's new board of directors, its former presidents Abdus Salam Murshedy, Atiqul Islam and Siddiqur Rahman, among others, were present.

“Global demands for apparel have declined, Russian-Ukrain war and inflation have caused retail sales fall in the major markets including the US and European Union. Prices of locally made major RMG goods have also fell by 8.0 per cent to 16 per cent during the last eight months,” the BGMEA’s newly-elected president said.

Overall production cost has increased manifold due to wage hikes, high prices of gas and electricity and other rising transportation costs, he explained, adding that during the July-April period of the current fiscal year, RMG exports grew by only 4.97 per cent and failed to achieve the target by 5.77 per cent set for the period.

“To sustain the competitive edge in the global market, we have requested the government for some policy supports,” Kochi said reiterating his demands for reducing source tax to 0.50 per cent from the existing 1.0 per cent for the next five years and fixing income tax on cash incentive to five per cent from the existing 10 per cent.

His other demands included continuation of cash incentive support until 2029, special allocation for workers’ food rationing, support to attract investment and exports on non-cotton items.

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