Bangladesh Garment Manufacturers and Exporters Association(BGMEA) has sought more policy support from the government to achieve the 100-billion export target by 2030. Leaders of the country’s apex trade body for the garment sector have also demanded that the government reduce source tax to0.50 percent and continue providing incentivesuntil 2029.
They have further sought VAT exemption for goods and services of the RMG industry, assistance in exporting non-cotton apparel and help in setting up of a special fund for food-rationing for garment workers.
The BGMEA leaders have urged the government to consider meeting other demands placed by them in the next national budget for the fiscal year 2024-25.
The demands were made during a view-exchange meeting with journalists held at Pan Pacific Sonargaon Hotel in the capitalon Saturday.
While speaking at the meeting, BGMEA President SM Mannan Kochi said that major issues related to the RMG industry and its sustainability rights at the moment include settling of RSC related complications, trade facilitation, especially reducing complications related to VAT, tax, customs and banking.
“Introducing credit guarantee facilities and exit policy, bringing SME industries under special policy support, enhancing competitive capacity through automation and digitisation, taking move to diversify markets and products, and determining unified codeof conduct have become very essential for the apparel industry,”he added.
Former BGMEA President and Dhaka North City Corporation Mayor Atiqul Islam, former BGMEA President Abdus Salam Murshedy, former BGMEA President Siddiqur Rahman, and Economic Reporters Forum President Refayetullah Mirdha, among others, also spoke on the occasion.
Atiqul Islam said Bangladeshi exporters need to participate in international fairs more especially to increase importsto the countries like Brazil, Russia, South Africa, Turkey and ASEAN countries.
The BGMEA president said, “We have already talked to the central bank governor and requested him not to provide loan facilities for the factories located outside industrial areas. We have also talked about exit policy and export credit guarantee scheme.”
The readymade garment industry saw only 4.97 percent growth in July-April this year while demand for apparel hasdropped in USA and Europe by 7 percent and 13 percent because of ongoing wars, he added. “The number of the factories exportingapparel items directlyto different countries has already come down to 2,200 from 5,000. Our stake in the world market is only 7.87 percent. So,export potential still remains unexplored.”
He further said, “If we can avail all facilities from the government, the RMG industry will be able to play its active role in building ‘Sonar Bangladesh’ as dreamt by Bangabandhu Sheikh Mujibur Rahman.”
