Staff Reporter :
The apparel exporters have appealed to the government for policy support in the forthcoming budget for the next fiscal year (FY25).
Their primary request is to revert the tax at source to the previous rate of 0.50 percent from the current 1 percent against exports and to maintain this rate for the next five years.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the leading organization in the apparel industry, has also called for the continuation of cash incentives on export earnings until 2029.
Additionally, they propose reducing the tax on these cash incentives from 10 percent to 5 percent.BGMEA President SM Mannan Kochi presented these proposals during a view-exchange meeting with journalists at a city hotel on Saturday.
Notable attendees included former BGMEA presidents and current Dhaka North City Corporation Mayor Atiqul Islam, Abdus Salam Murshedy, and Siddiqur Rahman.In his address, Kochi emphasized that the new BGMEA board is prioritizing several key issues.
These include resolving complexities related to the RSC (RMG Sustainability Council), simplifying business processes, continuing cash incentives until 2029, and providing alternative support.
The board is also focusing on initiatives related to the banking and financial sectors.Kochi outlined plans to introduce exit policies and export credit guarantee facilities, bring SMEs under special policy support and financing schemes, enhance competitive edge through automation and digitalization, and pursue product and market diversification initiatives.
The BGMEA also intends to implement food rationing and welfare programs for workers, establish fair product pricing and floor prices, formulate a unified code of conduct, increase the capacity for building environment-friendly factories, and offer special policy support to encourage investment in the man-made fiber-based industry.
Highlighting the future plans of the BGMEA board, Kochi urged the government to exempt various products and services related to the RMG industry from VAT and to provide tax rebates on the import of fire safety equipment.”
We hope that these recommendations will be reflected in the upcoming national budget,” Kochi stated.Kochi also announced the reintroduction of the BGMEA’s journalism fellowship and sought government intervention to resolve customs, VAT, and bond-related issues at the National Board of Revenue (NBR).
He listed several steps for product and market diversification and addressed the power and energy crisis.
Kochi stressed the importance of resolving complexities related to HS codes and the weight of woven fabric, and advocated for restricting gas and power connections to industries outside designated industrial areas.
The BGMEA president further urged the government to take legal action against individuals who obstruct export operations, harass exporters, and harm the country’s economy.