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BGMEA urges govt to continue the existing rates of source tax and corporate tax for the next five years

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Desk Report: The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government to continue the existing rates of source tax and corporate tax for the next five years to facilitate the strong rebound of the RMG industry from the Covid-19 impacts and ensure its sustained growth in the coming days. The association also called for exemption of VAT on the goods and services procured from local markets by the export-oriented RMG industries.

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BGMEA President Faruque Hassan placed the proposal before the National Board of Revenue (NBR) in a pre-budget talk held on February 17. NBR Chairman Abu Hena Md Rahmatul Muneem presided over the meeting which was also attended by BGMEA Vice President Shahidullah Azim, former First Vice Presidents S M Abu Tayeb and Nasir Uddin Chowdhury, Chairman of BGMEA Standing Committee on UD-Knit and Woven Md. Nurul Islam, Chairman of Bangladesh EPZ Investors’ Association Shahadat Musharraf Khan, and former BGMEA Director Md. Munir Hossain. BGMEA President Faruque Hassan said after passing an unpresented difficult time over the last two years due the Covide-19 pandemic, the RMG industry of Bangladesh is recovering from the impacts but it is facing a number of problems, the second wave of the pandemic and its new variants.

“Increase in prices of yarn, chemicals and other raw materials in the global supply chain has pushed up production costs in garment manufacturing while freight fare and transportation costs have also gone up, making it challenging for the industry to retain its competitiveness in the global apparel market,” he said.

He further said timely policy support of the government is of utmost important to keep the RMG industry competitive and steer it forward, especially at a time when opportunities are emerging for the sector with many challenges on the other side. The support of the government, the apparel industry would be able to sustain its growth and contribute more the development of Bangladesh, Faruque Hassan said in an optimistic note.