In its budget proposals, the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has demanded a 10 per cent cash incentive against the use of local raw materials for the next two years, and 4.0 per cent for imported ones. Consumer demand is projected to fall by 40%, leading to a decrease in commodity prices, and making it hard for exporters to survive. Also, several factories will shut down because of the continuing Coronavirus outbreak. Hence, BKMEA also recommended the government provide a guideline for exit in the upcoming budget. The association also demanded the continuation of the existing 0.25 per cent source tax for the next year and the withdrawal of 5.0 taxes on cash incentives.
Other specifications include industrial racking system (IRS) duty-free import, industrial thermostat dehumidifier, and other safety equipment. About the IRS, if they can set up international standard-compliant factories and bonded storage facilities, the trade body hopes to receive more job orders from foreign buyers. A modern IRS, according to it, helps to store huge amounts of goods in a short space and carry them out quickly in a bonded warehouse.
