Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) want corporate tax to be reduced to 15% from 35% for the fiscal year (FY) 2018-19. To remain competitive in the global market and to attract new investments, leaders of BGAPMEA came up with the call at a post budget press conference in the capital Saturday.In the proposed budget for the fiscal year 2018-19, the government has kept corporate tax for the garment accessories and packaging manufacturers unchanged at 35%.While addressing the post budget conference, President of BGAPMEA Abdul Kader Khan said: “For a long time, we have urged the government to bring down the rate of corporate tax for the garment accessories and packaging manufacturers down to a tolerable level.” “But, our demands are not reflected in the proposed budget. Production cost has increased by 17% due to rise in prices of raw materials, while the prices of finished goods are declining,” said Abdul Kader.Abdul Kader further added: “Considering the present situation of the industry, we urge the government to set the corporate tax rate at 15% from 35%, to remain competitive in the global market.”“Right now, we are meeting about 95% of the demands locally. But we are not getting proper policy incentives from the government. So, it is our earnest call to the government to provide is equal opportunity to grow,” he added.BGAPMEA also urged the government to set the tax at source to 0.50%, which is 0.70% in the outgoing fiscal.Speaking on the contribution of the backward linkage industry to the export oriented industry, especially apparel, leather and pharmaceutical industry, Abdul Kader said: “We are helping reduce export lead time by providing instant supply of accessories.”Abdul Kader also said: “This sector is also earning foreign currency by exporting garment accessories and packaging products.”According to BGAPMEA’s latest data, garments accessories and packaging products earned $6.7 billion in the last fiscal year, of which over $1 billion came from direct exports.Normally, accessory products are exported with finished products and termed as deemed
