Apparel manufacturers and exporters expressed Monday their resentment over recent remarks by the revenue board chairman about their alleged involvement in capital flight. The Bangladesh Garments Manufacturers and Exporters Association (BGMEA), at an urgent press briefing on the existing condition of the garment industries, said such sweeping remarks by an important government official have hurt the businessmen. According to a report, the National Board of Revenue (NBR) chairman at a meeting of the standing committee for the finance ministry claimed owners of garment factories are laundering money abroad. He disclosed a garment factory owner made a shipment of 247 containers but brought no money to the country. The BGMEA called for launching an investigation against the exporters found guilty by the Customs and the NBR without generalising about all businessmen. The BGMEA organised the press-meet at its office in the city to explain many factors that are responsible for recent declining trend of export growth due to appreciation of Bangladesh Taka and devaluation of competitive currencies. The association demanded two special garment zones near Dhaka and Chittagong for better working environment in factories. President of BGMEA Md Siddiqur Rahman, in a written statement, said such sweeping remarks by the NBR chairman have hurt the business community involved in a sector that brings in 82 per cent of the country’s export earnings. Mr Rahman said if such comments and views continue, the second generation garment owners will no more be interested in business. “Our question is if the NBR finds traders guilty of under-invoicing or money laundering, then why shouldn’t it unmask the offenders”, Mr Rahman asked. When asked over unscrupulous traders who are enjoying bond facility (duty-free import of raw materials) without having any factory and selling those in domestic retail market, the BGMEA president said no one could get such ‘gifts’ without a manufacturing unit. “But if the Customs finds any one is involved in such activity, the BGMEA also will help the enforcement authority to detain him/her,” he said. Answering a question on recent labour unrest over wage hike at Ashulia industrial hub, he said wages will be increased in time in accordance with the existing law. The association president said export growth of readymade garments (RMG) declined by 3.53 per cent point in the first half of the current financial year (FY’17) compared to that of last year. The sector achieved only a 4.37 per cent export growth during the period. Exports to second major destination US declined by 9.11 per cent during the first half of the FY’17, he said. Production cost surged by 17 per cent during the period due to gas crisis and other barriers, he pointed out. The Brexit effect, US election and fall in the value of British pound and euro have made the situation more complicated, he said. “Currencies of our competitors were devalued. Indian rupee was devalued by 40 per cent in last four years, Vietnamese currency by 7.10 per cent but Bangladeshi Taka appreciated by 7.66 per cent during the period which made our products less competitive’, he figured out. Prices of Bangladeshi products fell by 3.81 per cent in the US. The BGMEA expressed its concern as the recent Monetary Policy Statement (MPS) had no specific direction over combating export barriers like appreciation of Taka and fall in other currencies against greenback. Vice presidents of the Association SM Mannan, Mohammad Nasir, Directors Miran Ali, Shahidul Hoque and Munir Hossain were present, among others.
