Bangladesh RMG makers seek continuation of cash support

Addressing journalists in capital Dhaka recently, the BGMEA chair highlighted that the industry’s competitiveness and investment prospects would be severely impacted if policy support faltered.

Prominent figures such as former BGMEA presidents Atiqul Islam, Salam Murshedi, Siddiqur Rahman, and current board members attended the meeting.

SM Mannan said, “We aim for $100 billion in garment exports by 2030, which requires sustained government policy support. Without this assistance, reaching our target will be impossible.”

He stressed the industry’s hope for continued government cooperation to achieve the goals while also pointing out that the number of factories directly exporting has declined from 5,000 to 2,200 and maintained that these factories are crucial for sustaining and expanding exports and creating new jobs.

As the largest employment-generating sector, the garment industry holds significant potential for economic revival and job creation in the country.

The BGMEA president further noted, “Our share in the global market is only 7.87 per cent, presenting immense opportunities. Continued government cooperation will enable the garment sector to play a leading role in building a poverty-free, Smart Bangladesh.”

He also urged the government to reduce the tax at source on exports to 0.5 per cent from 1.0 per cent in the upcoming 2024-25 budget, maintaining this rate for the next five years, to help the industry navigate crises.

Additionally, the BGMEA chair called for a reduction in the income tax deduction rate on incentive cash assistance from 10 per cent to 5 per cent, advocating for the continuation of incentives until 2029.

He also requested that raw materials for the garment industry be VAT-free while also demanding tax concessions on importing fire and safety equipment for export industries and subsidised import rates for replacing damaged equipment.

He further urged special funds for food rationing for workers and support for non-cotton garment export and investment.

Fibre2Fashion News Desk (DR)