Citing the losses suffered on account of the coronavirus pandemic, the apex garment makers’ body, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), has sought more tax cuts for the garment sector, in the next financial year. The newly elected BGMEA President Faruque Hassan expressed hope the Government would consider the suggestions put forth by the garment makers, adding, “We have submitted budget proposal to the Finance Ministry.” The garment makers’ body has, reportedly, proposed the Government to reduce the tax at source on apparel exports from the existing 0.5 per cent to 0.25 per cent for the next five years and not to deduct income tax against this source tax even as it requested the Government to keep the corporate tax rate at 10 per cent for green factories and 12 per cent for other factories for the next five years. We have also demanded duty-free facilities for the import of various eco-friendly equipment for the export-oriented garment industries, reportedly, maintained Faruque Hassan while adding that BGMEA has demanded to reduce the import duty on industrial racking system equipment from 15 per cent to 0 per cent even as it sought the maximum cooperation of the Finance Ministry for the release of various imported goods and fire extinguishers. The BGMEA has also asked for complete exemption or rebates on excise duty, VAT and all other taxes required to make factories safe, environment friendly, risk-free and cost-effective, maintained Faruque Hassan.
