Wig and human hair have turned out to be important export items of Uttara EPZ in Nilphamari district. Sources said, the export of the items is increasing year on year. One Chinese co. YCL Ind BD Ltd and another Hong Kong based Co. Ever Green Product Factory BD Ltd are producing the exportable wigs. More than 2000 workers have been employed in these two factories and almost all of them are local youths comprising both male and female. While contacted one officer of Ever Green Product Factory BD Ltd said, his factory’s export is gradually increasing due to its large demand in the international market.

Source: https://www.thefinancialexpress-bd.com/2015/05/27/94242

The government has decided to adopt an action plan for ensuring health and occupational safety in five industrial sectors including readymade garments (RMG) and leather, sources said. The decision was taken Tuesday at the first meeting of a committee that was formed by ‘National Industrial Health and Safety Council’ in March. “Initially, we have prioritised five sectors garment and textiles, leather, shrimp, ship building and breaking and chemical considering the size of sectors,” Syed Ahmed, head of the committee and also Inspector General of the Department of Inspection for Factories and Establishments (DIFE), told the FE after the meeting. Gradually, other sectors would be included in the plan, he mentioned. The 13-member committee was formed to set common standards to ensure occupational health and safety for all the industrial sectors of the country. The committee again formed two working groups comprising representatives from workers, owners, the government and experts to devise strategy for implementing the National Occupational Health and Safety Policy 2013, meeting sources said. Later, a set of common standards that would be applicable to both formal and informal sectors would be framed mainly to ensure occupational and health safety, they explained. The groups will exchange views with all the stakeholders, they added. Earlier, the ministry of labour framed the policy aiming to speed up pace of industrialisation, ensure workers’ safety and compliance with other standards, apart from retaining competitiveness, especially in the wake of frequent disasters in the country’s top foreign exchange-earning garment sector, officials said.

Source: https://www.thefinancialexpress-bd.com/2015/05/27/94272

Strongly opposing the government’s move to raise source tax on readymade garment (RMG) export proceeds, leaders of the country’s leading trade bodies Tuesday demanded imposition of a uniform source tax for all export sectors. The businesses at the business advisory council meeting also suggested that the government should ensure smooth supply of natural gas and power and facilitate other infrastructure support for helping enhance competitiveness of local industries in the global market. International Chamber of Commerce, Bangladesh (ICCB) President Mahbubur Rahman, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Kazi Akram Uddin Ahmed, Metropolitan Chamber of Commerce and Industry (MCCI) President Syed Nasim Manzur, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Md Atiqul Islam and its former President Shafiul Islam Mohiuddin, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President AKM Salim Osman and Dhaka Chamber of Commerce and Industry (DCCI) President Hossain Khaled were, among other business leaders, present at the meeting, held at the Export Promotion Bureau office in the city with commerce minister Tofail Ahmed in the chair. About the government’s move to raise the source tax on apparel export earnings, the BGMEA leaders said if the source tax rate is increased it would create an adverse impact on the country’s apparel sector. They also told the meeting that the local apparel sector had already faced adverse situation as its export receipts sustained a slow growth over the months following political turmoil and impact of other external factors. Considering the situation, they demanded of the government to keep the existing rate (0.30 per cent) of source tax unchanged for the apparel sector. The business leaders raised the issue of source tax before the meeting against the backdrop of disclosure by the finance minister on different occasions that the government has a plan to hike the existing source tax on apparel export earnings in the upcoming budget. The leaders of the BKMEA, on the other hand, also pleaded for rationalising the supplementary duties and make the time- bound policy on tax and value-added tax (VAT). Mentioning that the exporters have to face some problems in getting the government’s export incentive subsidy, they suggested scrapping of the existing audit system for payment of such benefit. Leaders of other export sectors, however, also demanded that the rate of source tax should be the same for all as some other sectors are paying higher rate of 0.60 per cent. They also suggested the government to take timely measures to help flourish and sustain small and medium industries. They also called for allowing local businesses to invest outside the country. Frozen food exporters demanded a separate allocation of Tk 4.60 billion in the next budget for helping the sector face some challenges they are facing. The minister, however, assured that the government would look into their issues. A sub-committee was formed to make recommendations in line with their demands.

Source: https://www.thefinancialexpress-bd.com/2015/05/27/94270

Bangladesh Bank will take all possible measures to liberalise country’s foreign-exchange rules and regulations for attracting foreign investors to a number of proposed economic zones. The decision was taken at a meeting between the central bank and the Bangladesh Economic Zones Authority (BEZA) at the BB headquarters Tuesday. Presided over by BB executive director Md. Ahsan Ullah, the meeting was attended, among others, by BEZA secretary Muhammad Abdus Samad, its general manager Hariprasad Paul, development consultant AKM Mahbubur Rahman and senior officials of respective departments of the central bank. The meeting discussed investment-promotion measures like exchange of foreign currency for the industries to be set up in the economic zones, procedure of receiving loan in foreign currency, establishment of offshore banking units and repatriation of royalties and technical fees. Stress was placed on framing newer foreign-exchange rules and regulations and simplifying the existing ones. “The government has already approved proposal for setting up 22 economic zones in order to attract foreign investment and create large-scale employments in the country,” said a news release. Major economic powerhouses of Asia like China, India, Japan and Korea are coming up to invest in the planned economic zones.

Source: https://www.thefinancialexpress-bd.com/2015/05/27/94306

The government is likely to award two special economic zones (SEZ) to Indian investors-one at Mongla in Bagerhat and the other at Bheramara in Kushtia. The Mongla SEZ would be set up on about 205 acres of land and the other in Kushtia on 477.16 acres. A Memorandum of Understanding (MoU) is likely to be signed between the governments of Bangladesh and India during the upcoming visit of Indian premier Narendra Modi who arrives here on June 6 next on a two-day visit. Following an official letter of the Indian High Commission last week, the foreign ministry requested the Bangladesh Economic Zones Authority (BEZA) to move ahead with the matter. “We have prepared a draft MoU which has been sent for approval of the government high-ups,” said BEZA executive chairman Paban Chowdhury. The BEZA has sent the draft to the ministry for consent of the Indian counterpart, he added. Earlier, a feasibility study had been conducted to find out the economic potentiality of the Indian investment. Sources said India chose the locations for investment. Also, a train line would be constructed under the Indian LOC (line of credit) in the Mongla area. India, under its credit line, will assist Bangladesh to construct a new rail-line between Khulna and Mongla to connect the country’s second seaport with a railway network. In connection with the assistance, the Bangladesh Railway (BR) already signed a joint venture consultancy service contract with the Consulting Engineers Group Ltd and Nippon Koei India Private Ltd of India. BEZA officials said the economic zones would be awarded if both the party agree on the relevant terms and conditions. The government in February last approved proposals for setting up 17 economic zones in the country, including three private zones-one in Narsingdi and two in Munshiganj. The government has also approved special incentive packages for local and foreign investors to attract their investment in economic zones. The government enacted the private economic zone law in 2010 aiming to materialise the Vission-2021 by expediting economic growth and alleviating poverty.

Source: https://www.thefinancialexpress-bd.com/2015/05/27/94297

We buy too many clothes, and we pay too little for them. That’s the message of “The True Cost,” a new documentary on the perils of the fashion industry, which is being released next week. The film is a sweeping, heartbreaking and damning survey of the clothing economy. It covers malformed children of pesticide sprayers in India’s cotton belt, gruesome shots of the deadly 2013 Rana Plaza factory collapse in Bangladesh, Indian rivers frothing with chemicals, and mountains of discarded clothing in Haiti. “I believe these clothes are produced by our blood,” Shima Akhter, a Bangladeshi factory worker, says in the film. “I want the [factory owners] to be aware and look out for us, so that no more mothers lose their kids like that.” The film interviews a factory owner in Bangladesh, who says the constant pressure to produce cheaply is partly responsible for the unsafe conditions. “Is it really ethical to buy a T-shirt for $5, or a pair of jeans for $20?” asks Livia Firth, creative director at the sustainable businesses consultancy Eco-Age. Related: Out of a tragedy, socially responsible fashion The movie is filled with disturbing facts. Here’s a few: – 250,000 Indian cotton farmers have killed themselves in the last 15 years, partly as a result of going into debt to buy genetically modified cotton seeds. – There are 80 billion pieces of clothing purchased worldwide each year, up 400% from two decades ago. – American’s throw out 82 pounds of textiles annually. -Only 10% of the clothes people donate to thrift stores get sold — the rest end up in landfills or flood markets in developing countries. “I came into this completely blind,” director Andrew Morgan said at a press screening Friday. “I never thought twice about a piece of clothing I wore.” Morgan said a photo of children — who were close in age to his own kids — hunting for loved ones near the Rana Plaza rubble is what spurred him to make the film. He said systematic changes are needed in this and other industries, chief among them counting the costs of pollution or unsafe working conditions that are not currently factored into the price of goods. But for now, he urges consumers to opt off the treadmill of purchasing more and more cheap clothing — what’s being referred to as “fast fashion” — and buy fewer, better-made items. “Let’s back off this endless, constant purchasing and invest in clothes we love,” he said.

Source: https://www.observerbd.com/2015/05/26/90802.php

The government has planned to impose higher tax on export of apparel items for collecting more revenue from the sector, officials of the finance ministry said. They said that tax at source on export of RMG products might be increased to 1.5 per cent, five times higher, from the existing 0.30 per cent in the upcoming national budget for the fiscal year 2015-16. Tax at source at 0.30 per cent is set to expire next month as the government lowered the tax rate in April 2014 for 14 months from the 0.80 per cent. The government may incur an estimated loss of around Tk 2,000 crore in the period because of reduction of tax at source on export for the sector, according to the estimate of the revenue board. Special tax rate calculation facility which was scraped in last fiscal year for showing increased income from export earnings by the apparel exporters may also not be reinstated, they said. RMG item exporters could show several times income from export earnings than actual ones taking the advantage of the special tax calculation facility under which, from 2005 to June, 2014, taxmen calculated tax at an estimated 10 per cent at the annual tax assessment though exporters paid tax at the rate of 0.80 per cent. Now, the tax will be calculated at the regular 35 per cent as the revenue board in last fiscal year scrapped the facility. Officials said that the National Board of Revenue had already finalised budget proposals including such measures for the sector in line with the instructions of the government high-ups. Top executives of the government think that the apparel exporters now should pay tax at higher rate after enjoying huge tax benefits over the last few decades, they said. RMG exporters enjoy various fiscal incentives that include payment of income tax at reduced rate, cash incentives at 0.25 per cent on freight on board value of export items, duty-free import of raw materials, duty drawback facility and full waiver on utility bills. RMG exporting companies need not pay any other tax on their export earnings, except tax at source paid on export proceeds, as it is considered as final settlement though other sectors have to pay income tax at regular rate of 35 per cent for companies. At the pre-budget discussion with the revenue board in April, Bangladesh Garment Manufacturers and Exporters Association and Bangladesh Knitwear Manufacturers and Exporters Association, however, demanded for continuation of the special tax rate calculation facility and 0.30 per cent export tax for next five years. But the government decided to realise more tax from the sector as the sector has become more resilient and profitable sector, an official of the revenue board said. A large amount of revenue will come as tax at source on export receipts if the rate is increased, he said. Officials said that the NBR primarily made a proposal to increase the tax to 0.80 per cent to one per cent but the government high-ups instructed to set the rate at 1.5 per cent.

Source: https://newagebd.net/123116/govt-wants-to-raise-apparel-export-tax-5-fold-in-budget/#sthash.A8nle14t.dpuf

Apparel exporters may see a large hike in the tax on their export earnings from the upcoming fiscal year. Indications have it that the tax rate may be fixed at 1.5 per cent-a fivefold increase from the existing 0.30 per cent-in the budget for the FY 2015-16. The new national budget will be proposed in parliament on June 4 next. Tax officials said they had lost Tk 20 billion in tax revenue in the sector since April last year, after the government cut down the tax from 0.80 per cent to 0.30 per cent. Also, there might be no special tax rate for the apparel exporters from next year. The government is likely to maintain the normal tax rates for the sector. In the budget for the current FY, the government has withdrawn the special tax rate of 10 per cent. Apparel exporters’ annual tax assessment is now being conducted at the regular rate of 35 per cent, in case of company. The tenure for the special tax rate for readymade garment and knitwear exporters expired on June 30, 2014. Since 2005 until June 30, 2014, taxmen had calculated tax at an estimated rate of 10 per cent at the time of annual tax assessment as part of measures for helping the main export industry come of age and compete on the global market. Finance Minister AMA Muhith speaking at a discussion meeting in the city last Saturday said the apparel industry is now mature enough to pass on some benefits to the government, indicating a hike in tax rate for the industry. The RMG and knitwear exporters are enjoying a pared-down rate of 0.30 per cent in paying tax at source on their export earnings. The taxmen consider it as finally paid tax-known as final settlement-on their entire incomes from export. Tax officials said it would be difficult for the revenue board to achieve the high target for income-tax collection next year unless the government spreads its tax net over the potential sector. “Apparel exporters have enjoyed a lower rate of tax at source for a long time. Time has come to raise the tax rate on the export earnings for mobilization of internal revenue in the next FY,” said a number of the officials. The move evoked a strong plea from the exporters’ side for the government to reconsider the raise at this point of time. Exporters Association of Bangladesh (EAB) president Abdus Salam Murshedy urged the government not to increase tax at source in the upcoming fiscal as the sector is struggling to hold its competiveness. “We are facing different challenges to compete on the international market as competitive edge of the apparel exporters is on the decline,” he said. Bangladeshi apparel products have witnessed 1.0 to 2.0 per cent export growth while it is attained 15 to 20 per cent by the global competitors, he pointed out. He said new wages, increase in utility bills, bank interest rates, depreciation of the euro, higher oil prices are the major challenges facing the exporters in addition to the political impasse.

Source: https://www.thefinancialexpress-bd.com/2015/05/26/94144