The manufacturers of garment accessories demanded the same 15% corporate tax as RMG makers in the budget for Fiscal Year 2017-18. Mohammad Moazzem Hossain Moti, acting president of Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), made the demand in his budget reaction on Sunday. Since the garment accessories work as backward linkage for the ready-made garment sector, the government should make the corporate tax equal for the sub-sector to help boost the industry, said the manufacturers’ platform. In the proposed budget for FY’18, Finance Minister AMA Muhith on Thursday proposed to cut corporate tax to 15% from 20% for the RMG sector while the corporate tax for the garment accessory manufacturers remains at 35%.The platform, however, restates its call to bring down tax at source to 0.50% instead of 0.70%. As per the proposed budget, the garment manufacturers as well as the accessory manufacturers have to pay 1% tax at source from July 2017.The garment accessories sector is an emerging industry contributing much to the RMG export earnings, but it does not enjoy cash incentives against export, said Moazzem. He urged the government to provide cash incentives and other facilities. To ensure workplace safety, the manufacturers also demanded duty-free import of fire safety equipment including fire-proof paint for pre-fabricated building.
