Garment makers have sought exemption from VAT, duty and advance income tax (AIT) while importing construction materials in order to help establish Garment Palli (garment zone) at Baosia for expediting the setting up process of the zone by encouraging the entrepreneurs. They also sought budgetary facilities on duty, VAT and income tax in different dimensions to cover up the losses that the garment makers incurred due to the recent political turmoil and in the aftermath of Rana Plaza collapse. The garment makers made the call to the government at a pre-budget meeting held ahead of the budget for the next fiscal with the National Board of Revenue (NBR) in the capital on Wednesday. To reach the goal of exporting goods worth $50 billion by the year 2050, there is no alternative to work from under a single platform, said Md Atiqul Islam, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA). He called upon the government to help the entrepreneurs relocate the factory buildings by offering duty exemption on import of construction materials. To help the entrepreneurs of the garment sector make the industry green and safer, the government should offer duty exemption on import of all fire safety equipment and other machinery, Atiqul opined. He also demanded withdrawal of the additional duty under the Duty Evaluation and Internal Examine Commissionerate to simplify the bonded warehouse facilities for the garment makers. Calling upon the government for extending the existing source tax rate which is 0.3 percent now by another five years, the BGMEA leader said after Rana Plaza incident, the country’s garment sector has started fledging its wing with utmost transparency and accountability, Atiqul said. He suggested the government to provide 2 percent cash incentive on FOB which is 0.25 percent now to protect the industry from the present situation. AH Aslam Sunny, First Vice President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Abdus Salam Murshedy, former president of BGMEA and president of Exporters Association of Bangladesh, Rafez Alam Chowdhury, President of Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), were present at the meeting, chaired by Farid Uddin, Member of NBR. Submitting a 33-point demand before the NBR, Aslam Sunny said that there is no alternative to promote the apparel industry to ensure thriving economic growth side by side generating employment for a large number of people. The BKMEA demands included taking income tax from cost of manufacturing of the garment items, providing duty exemption on import of machinery related to fire safety, providing loan at a low interest rate, to help entrepreneurs obtain Leed Certificate of the US Green Building Council by establishing green factory buildings and offering zero percent duty on import of machinery of effluent treatment plant. He also demanded for waiving VAT imposed on import of pre-fabricated building structure. Demanding bond facility in the next budget, Rafez Alam at the meeting said that accessories and packaging sector has been playing a vital role to keep the garment sector vibrant. Reiterating duty exemption on fire safety equipment and pre-fabricated building structure for the apparel and accessories industries, Rafez said it would help the accessories and garment sector grow further with compliance.
Source: https://www.daily-sun.com/print/business/2015/04/30/500688#sthash.eakGQK5K.dpuf
