Garment accessories manufacturers have urged the government for providing duty free import of pre-fabricated building material fire proof paint under bonded facility in the budget for next 2017-18 fiscal.
Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) President Md Abdul Kader Khan said export-orientated garment accessories factories are under pressure from different agencies to construct compliant factory building, for which expensive fire proof paint is needed. "That's why we have demanded duty free import of the product under bonded facility."
He also demanded duty free fire resistance door, sprinkler system and equipment and emergency light with exit sign to help ensure compliance. Kader informed that the BGAPMEA placed a set of proposals before the National Board of Revenue through the Federation of Bangladesh Chambers of Commerce and Industry for the upcoming budget.
The NBR will hold a pre-budget meeting with the sector representatives on April 06 to discuss the issues, he said.The proposals also included extension of all existing bonded facilities as well as total factory yard area under bonded facility.
The organization proposed the government for withdrawal of additional-responsibility of Duty Evaluation and Internal Audit Commissionerate and withdrawal of statutory regulatory order (SRO) for receiving obligatory certificate from Customs Bond Commissionarate.
The manufacturers said although the sector is meeting the local demand for garment accessories, it is yet to get any incentive package from the government.
Export-oriented industries like apparel get such facilities, but the accessories makers do not get such incentives, which are necessary for the development of the sector, they said. They proposed cut in tax at source to 0.5% from the existing 0.70% on the export earnings and also demanded waiver in corporate for garment accessories and packaging industry from 35% to 15%.
"Expenditures like wages and transport fare increased substantially in recent days. So, the government should keep the rate of tax at source at a reasonable level," according to the proposal.
The proposals also included that the BGAPMEA members have taken an initiative to set up garment accessories and packaging institute for development of the industry by carrying out research, and sought allocation from the government in the next budget.
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