Local garment accessories manufacturers have made a set of proposals, including providing incentive package, duty-free import of fire safety equipment and reduction of tax at source on export earnings for the next budget. Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) also sought necessary allocation for establishing a testing laboratory and an institution for development of the industry in the budget for fiscal year 2016-17. It has put forward the proposals to the National Board of Revenue (NBR) recently. The manufacturers said although the sector is meeting the local demand for garment accessories, it is yet to get any incentive package from the government. Export-oriented industries like apparel get such facilities, but the accessories makers do not get such incentives, which are necessary for the development of the sector, they said. Besides, they sought duty-free fire resistance door, sprinkler system and equipment and emergency light with exit sign to help ensure compliance. They proposed introducing tax at source to 0.30 per cent from the existing 0.60 per cent on the export earnings. Expenditures like wages and transport fare increased substantially in recent days. So, the government should keep the rate of tax at source at a reasonable level, according to the proposal. The industry has no required testing laboratories in the country, forcing them to rely on foreign testing. The BGAPMEA members have taken an initiative to set up a testing laboratory and an institute for carrying out research, and sought allocation from the government, they added. The association’s other proposals include duty-free import of pre-fabricated building materials, pick up van for each unit.
