Apparel manufacturers want 5% cash incentive from government
A moment from the joint press conference of BGMEA, BKMEA, BTMA and EAB, held at Hotel Amarai, Gulshan, Dhaka, on May 27, 2019. Photo Courtesy: BGMEA
Bangladesh’s apparel manufacturers and exporters have sought 5 per cent cash incentive from the government ahead of the national budget plan for fiscal 2019-20.
They have sought the incentive both for exports to both traditional and non-traditional markets, for apparel factories registered with BGMEA and BKMEA, the two associations of woven and knit makers. This is an increase from the existing 4 per cent incentive on non-traditional markets.
Leaders of all the major apparel manufacturing and exporting associations came together to press for the demand at a pre-budget press conference in Dhaka, on May 27, 2019.
“It will take the government an additional fund of BDT 11,724 crore to implement the 5 per cent cash incentive,” Rubana Huq, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said at the press conference.
“This cash incentive is essential at this moment for Bangladesh’s apparel industry to compete against other countries. We need it to sustain the employment, exports, national interest and the competency of the industry,” Rubana Huq asserted.
Work orders were less in number due to election period uncertainty a few months ago, she said. “The sector will be able to turn around with 5 per cent cash incentive. Otherwise the apparel manufacturers will have to suffer.”
Mohammed Hatem, senior vice-president for Exporters Association of Bangladesh (EAB), demanded 5 per cent cash incentive for all exports for the next five years. “Exporters are in a critical situation. The government should consider this cash incentive.”
Apart from the cash incentive, the apparel manufacturers also urged the government to keep source tax at the existing 0.25 per cent and lower the corporate tax rate to 10 per cent, what is was previously before the government raised to 12 per cent.
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