Tofail backs cash incentives for garment accessories makers

Sunday, 28 January 2018

FE Report
Commerce Minister Tofail Ahmed on Saturday assured the garment accessories and packaging manufacturers of the government steps to help the sector meet export target.
He also said the government would scrutinise the possibility of providing cash incentives to the accessories and packaging manufacturers.
The minister came up with the views at the 'Export Trophy Presentation Ceremony' arranged at the closing of the four-day trade show on garment accessories and packaging products.
The Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) organised the event at International Convention City Bashundhara (ICCB) in the city.The National Board of Revenue (NBR) chairman Md Mosharraf Hossain Bhuiyan and the Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) president Md Shafiul Islam Mohiuddin also spoke at the programme with BGAPMEA president Abdul Kader Khan in the chair.
Delivering his speech, the minister said the country's garment industry imported its required accessories, but the local industry met almost 95 per cent of the demand.
Terming the incumbent government business-friendly, he said that the BGAPMEA has been playing a significant role in product diversification, which has been stressed in the 7th five-year strategy, so the government would continue its support the export-oriented sector.
NBR chairman said that the tax-collection authority tries everything to facilitate the business community as increased business volume ensures increased revenue collection.
The BGAPMEA president, in his speech, urged the government to provide cash incentives for the accessories and packaging sector for further development.
Requesting the government to declare garment accessories and packaging "product of the year", he called for corporate tax cut to 12 per cent from the existing 35 per cent for the sector.
Mr Khan said that the association now has over 1,600 members who meet the demand for around 95 per cent of the accessories and packaging products in the country's ready-made garments industry.
With proper policy support, the sector can reach the target of exporting $12 billion worth of products by 2021 and $18 billion by 2025, he added.
Accessories and packaging manufacturers earned $6.7 billion as direct and deemed export in the last fiscal year, while major direct export destinations were Indonesia, Malaysia, Cambodia, Vietnam and some Middle-Eastern countries.
The BGAPMEA for the first time awarded 12 companies for their export performance in four categories such as small, medium, large and direct.
[email protected]