Bangladesh Garment Manufacturers and Exporters Association (BGMEA) urged the government to withdraw for two years the one percent source tax on exports proposed in the budget for FY 2017-18.
They also demanded the corporate tax to be brought down to 10 percent for five years, and five percent cash incentive on exports for the next two years.
BGMEA President Md. Siddiqur Rahman made the call at a press conference organized at BGMEA office on 4 June following Finance Minister AMA Muhith’s proposal of the budget for Fiscal Year 17-18 on June 1.
In his media briefing Md. Siddiqur Rahman said that the RMG industry has been passing a difficult time due to a number of challenges like increasing production cost, remediation pressure, and slowdown in exports to major markets.
The apparel industry of Bangladesh has never faced such a critical situation in its history of 35 years, the BGMEA President said, and called upon the government to provide necessary fiscal support and incentives to protect the labor-intensive sector.
He expressed his hope that the RMG industry would be able to turn around in the next two years.
BGMEA Senior Vice President Faruque Hassan, Vice President SM Mannan (Kochi), Vice President (Finance) Mohammed Nasir, Vice President Mahmud Hasan Khan (Babu) and President of Exporters Association of Bangladesh (EAB) and former BGMEA President Abdus Salam Murshedy were also present at the press conference.