The Bangladesh Garment Manufacturers and Exporters Association welcomed the Tk 7.9 lakh crore national budget for FY 2025–26, acknowledging its focus on inclusive and sustainable development amid a post-political transition landscape.
In a statement issued by BGMEA administrator Anwar Hossain on Monday, the trade body praised the emphasis on education, health, good governance, job creation, and preparation for LDC graduation.
He said that the proposed 6.5 per cent inflation target and no increase in electricity prices were positive for low-income workers and industries.
Moreover, the VAT exemptions on LNG imports and reduced duties on petroleum and diesel are expected to cut production costs.
BGMEA also lauded allocations for women entrepreneurs (Tk 125 crore), blue economy research (Tk 200 crore), climate risk mitigation (Tk 100 crore), and youth entrepreneurship (Tk 100 crore).
The RMG sector, accounting for 84 per cent of exports, is under pressure from global challenges, including US tariffs, India’s transshipment suspension, high bank interest rates, and utility price hikes.
In this context, BGMEA appreciated the decision to keep source tax and corporate tax for exporters unchanged.
Moreover, they also applauded several reforms simplifying the bond and customs system, such as extended general bond renewal terms, revised penalties, and tariff exemptions for key machinery for EPZs.
However, BGMEA expressed disappointment that some proposals, like full VAT exemptions for RMG-related services and smoother HS code and bonded operations, were not included.
The association emphasised the need for continued support to safeguard the livelihoods of 4 million people tied directly and indirectly to the industry.
