Staff Reporter :
The proposed budget for the fiscal year 2024-2025 (FY25) is not unrealistic, but requires business-friendly policy support for effective implementation, stated Al Shahriar Ahmed, President of the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), at a post-budget press conference in the capital.
Ahmed emphasized the necessity of withdrawing new and increased duties on the export-oriented sector to facilitate the budget’s successful implementation.
“We demand the withdrawal of all newly adopted and increased duties in the export-oriented sector. If the government considers our demands, they would easily implement the budget,” he remarked.
The finance minister’s budget proposal includes many beneficial policies, according to Ahmed. However, he expressed reservations about fully endorsing the budget due to certain concerns.
“We are confused about welcoming the budget. Tolerable inflation levels provide opportunities for small entrepreneurs to do business, which creates employment and helps the government earn revenue,” he explained. “However, the proposed budget lacks specific guidelines in this area.”
Ahmed also criticized the proposed tax policies, particularly the increase in the regular taxpayer’s rate to 30 percent and the provision allowing amnesty for holders of undisclosed and black money with a 15 percent tax rate. “This is not logical,” he stated.
In his written speech, Ahmed made several specific demands including a reduction in the source tax to 0.5 percent for five years, down from the current 1 percent, and for this to be considered a final settlement, withdrawal of the proposal for a 200-400 percent penalty in cases of unintentional HS Code mismatches, allowing utilities connections and bank loans for factories located outside industrial zones for five years.
Ahmed’s demands reflect the industry’s need for a supportive policy environment to thrive under the new budgetary framework.
Mentioning the accessories and packaging sector, directly and indirectly, earned nearly $9 billion annually, and its global market size is around $700 billion, the BGAPMEA President said, “We demanding implementation of cash incentives for the accessories and packaging sector as deemed exporter.
“We demand all goods and services out of duties and VAT for the packaging and accessories sector.”
In reply to a question, BGAPMEA former president Rafez Alam Chowdhury said in the press conference said, “Private sector is most important to create employment.
We already know through the BBS survey that over 1 lakh private sector employees have dropped out.
“We directly earned over $1.5 billion through the accessories and packaging sector, which is not countable when compared $700 billion global market size. This market is dominated by China and Vietnam, though we have enough capacity to grab the market.”
Echoing with Rafez Alam, Al Shahriar said, “Not only garment sector, but we are manufacturing accessories and packaging for almost all export sectors. Even, we are meeting almost all local demands.
“But unfortunately, we have yet to get government attention. We will work with the government to grab the opportunity.”