The readymade garment exporters want tax-free import facilities of construction materials and safety equipments to be used to establish factories in the proposed garment village. The Bangladesh Garment Manufacturers and Exporters Association is going to place a set of budget proposals to the National Board of Revenue for the next fiscal year 2015-16 which include increasing the period of reduced rate at tax at 10 per cent up to next five years. ‘We will also place the recommendations for the continuation of source at tax at 0.30 per cent up to next five years,’ BGMEA vice-president Shahidullah Azim told New Age on Saturday. In the budget proposals the BGMEA will seek duty- and value added tax-free import of pre-fabricated building materials and colour for prefabricated buildings, he said. According to the BGMEA leader, the trade body will demand exemption from VAT against utility bills like gas, electricity and water bills. Another BGMEA source said the trade body would want special cash incentive at the rate of 2 per cent against all kinds of garment exports instead of existing 0.25 per cent for next three years. RMG makers will seek special fund in the budget so that entrepreneurs can avail low-interest loan for establishing compliant factories. The pre-budget discussion with the NBR is scheduled to be held on April 26. Azim said that the government allowed duty-free import of safety equipments but due to imposing VAT at the rate of 15 per cent on the items the prices became higher. He also said that they would seek special incentives for exporters of European Union as the exporters were facing losses in the eurozone due to depreciation of the euro by around 22 per cent over the few months. In the pre-budget discussion the garment exporters will place recommendations for loan rescheduling facilities for those who have loan over Tk 500 crore.
Source: https://newagebd.net/112728/bgmea-to-seek-tax-free-import-for-garment-village-factories-in-budget/
