Leaders of the apparel sector have requested that the
government increase the money assistance from 1% to 3% in the suggested
domestic budget against imports.
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| BGMEA |
In a post-budget press briefing on Sunday in Dhaka, the
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) produced the
call.
However, they called the suggested budget "inclusive,
business-friendly and pro-people" for fiscal 2019-20.
President Rubana Huq said they needed help to meet the
export markets ' difficulties.
Garment manufacturers left out of present export advantages
will receive incentives of Tk 28.25 billion for the next fiscal year once the
suggested budget has been passed.
Four clothing production industries are currently receiving
4 percent export incentives.
Finance Minister AHM Mustafa Kamal suggested to the
remainder of the clothing production industries an export incentive of 1% in
the next fiscal year.
"We sought an allocation of Tk 141.25 billion or 5
percent cash incentives against exports to all locations, but only 1 percent
for the traditional market was provided by the government," Rubana said.
"We are calling for the rise taking into account the sector's current
status."
BGMEA stated that prices of ready-made clothing are falling
every day on the global market.
As a consequence, in April alone, 22 garment factories left
the company, while last year's figure was around 1,200. On the other side, the
cost of manufacturing is increasing.
Because of regulated exchange rates, companies in Bangladesh
are losing a competitive edge to the worldwide economy, which economists also
recognize.
BGMEA President Rubana said that if the state does not
provide unique budget support, thousands of businessmen and employees will fall
into disarray.
The government also requested that the corporate tax on the
garment industry be reduced from 12 percent to 10 percent.
She said the government should waive the obligation to
import eight kinds of fire safety gear used in the sectors for the reasons of
occupational safety. The state suggested waiving obligation on five of these
things in its budget.
The BGMEA boss also asked the garment industry for a
single-digit bank interest rate.
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