Readymade Garment (RMG) exporters have demanded five percent cash incentives on export for two years which will be helpful to increase their power of competition in the global market.
For the upcoming fiscal year's budget, they urged the government to exempt tax at source from the RMG sector. They also called for slashing corporate tax to 10 percent from the existing 20 percent.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Md Siddiqur Rahman made the demand on Saturday at a press conference held at the association office in the city.
He said, the RMG sector is now facing several problems including the price of production which has dropped significantly. The government should make all policies for the apparel sector for a minimum of five years' period as yearly changes in policy create a lot of problems in running their businesses, he observed.
He said, the apparel manufacturers are concerned at factory closures as in the last two years more than 1,200 garment factories were closed showing various reasons. "After the inspection of Accord and Alliance, a number of garment factories have been partially, temporarily and completely closed."
The BGMEA chief further said, many entrepreneurs are unable to survive by paying interest of bank loans, house rent and other expenses. In this situation entrepreneurs are at risk for back-to-back liability, project loan, stock lot, customs loyalty, term loan and bad CIB report, he noted.
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