The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has called for several government measures to help the industry reach its $100 billion export target by 2030.
The measures include a reduction in source tax to 0.50 per cent, continuation of the cash incentive for apparel exports until 2029 and immediate steps to stop customs harassment.
BGMEA President SM Mannan Kochi presented these requests during a view exchange meeting held at a city hotel on Saturday.
The meeting was attended by the BGMEA's new office bearers and board of directors, along with former presidents Abdus Salam Murshedy, Atiqul Islam and Siddiqur Rahman.
Citing the Russia-Ukraine war and inflation as factors leading to a drop in retail sales in major markets like the US and the European Union, Mr Kochi said global apparel demands have declined.
"Prices of locally-made major garments have also decreased by 8 per cent to 16 per cent in the past eight months," added the newly elected BGMEA president.
Meanwhile, overall production costs have risen manifold due to wage hikes, higher gas and electricity prices and increased transportation costs, he said.
As a result, RMG exports for the July-April period of the current fiscal year only grew by 4.97 per cent, falling short of the target by 5.77 per cent for the period, Mr Kochi said.
To sustain the competitive edge in the global market, the BGMEA president said they have requested the government for some policy support. This includes reducing the source tax to 0.50 per cent from the current 1.0 per cent for the next five years and lowering the income tax on cash incentives from 10 per cent to 5 per cent.
He also requested the continuation of the cash incentive for apparel exports until 2029, special allocations for worker food rations and support to attract investment and boost exports of non-cotton garments.
The BGMEA president said exporters are facing a wide range of "customs harassments" related to releasing export goods, misinterpretation of garment weight and incorrect classification under the harmonised system (HS) code.
He expressed concern over the recent decision about not providing gas and electricity connection to factories outside of industrial zones, arguing the move would hamper investment and exports.
Mr Kochi said since many factories have already invested heavily, they would be affected severely by the decision.
Mr Kochi pointed out that BGMEA has 46 plots in the Mirsarai Economic Zone, while none of them currently have any gas and electricity connections. He urged the government to reconsider this policy, at least for a temporary period following the completion of infrastructure development within the zone.
© 2024 - All Rights with The Financial Express
