Primark has completed paying over 95 percent of long-term compensations to 668 Rana Plaza disaster victims, who were workers of New Wave Bottoms, a supplier of the British retailer. The retailer made the payments through Brac Bank and bKash to the family members of the dead and injured workers of New Wave Bottoms, Primark said in a statement yesterday. “There are a very small number of claimants yet to receive compensation because either the individuals require a high level of support and/ or the victims and/or their dependants have only very recently come forward,” Primark said. “This approach to compensation involved medical and vulnerability assessments.” Payments have been made according to the impact of the injury and the level of disability. In the case of the dependents of the deceased and missing workers, it was according to actuarial estimates of lost earnings, Primark said. The process has taken time to complete because the company was determined that its approach to compensation should be as fair, rigorous and as sustainable as possible, according to Primark. “The company is supporting victims, or their dependants, in the handful of cases where final payments remain outstanding.” Primark’s total aid stands at $14 million. The company has additionally made a payment of $1 million to the Rana Plaza Donors Trust Fund, chaired by the International Labour Organisation, for distribution to workers in its competitors’ supply chain, according to the statement. Primark has signed the Accord on Fire and Building Safety in Bangladesh, which is carrying out factory building inspections. It has also carried out building surveys of factories in Bangladesh from which it sources garments. Primark will continue to monitor the welfare of victims with long-term injuries or loss of earnings, in conjunction with local partners that have advised the company on its approach to compensation.

Bangladesh’s apparel sector is set to face yet another challenge as its close competitor Sri Lanka is lobbying for duty benefits from the European Union. The two parties held a meeting in Colombo last week, where they discussed the possibility of revival of the ‘Generalised System of Preferences Plus’ status for Sri Lanka. The island nation lost its GSP Plus status in 2010 after the United Nations Human Rights Council (UNHRC) alleged violations of human rights during the civil war. However, given the political commitment by the new Sri Lankan government, the EU decided to consider the case under a special monitoring process. The full application process takes about 10 months. If the status is granted, Sri Lankan exports to the EU will attract lower or no duty. Currently, Sri Lanka is the seventh largest garment exporter in the $450 billion market, with a little more than 1 percent share, according to data from the World Trade Organisation. Bangladesh is the second largest garment exporter after China with a 5 percent market share. The EU is the largest export destination for the country’s garment products, where it has been enjoying duty-free benefits since 1971. In fiscal 2013-14, the country exported more than $14 billion worth of garment items to the EU, according to data from the Export Promotion Bureau. Ahsan H Mansur, executive director of the Policy Research Institute of Bangladesh, said the country has to become more efficient to cope with the impending challenge from Sri Lanka. “Obviously, we will lose competitiveness if Sri Lanka is also granted the GSP plus status to the EU, as both the countries will compete with the same garment products,” said Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association. The country’s upper hand in garment trade was already compromised last year when Pakistan was included in the GSP Plus scheme. Bangladesh accounts for around 13 percent of the apparel items that enter the EU, meeting 25 percent of the region’s demand for shirts, T-shirts, sweaters and trousers. In 2014, Sri Lanka’s apparel exports to the EU increased 10.5 percent year-on-year to $2.16 billion. “Sri Lanka should capitalise on its advantage of a well-qualified labour force to move further up the value chain,” according to a study by the Standard Chartered Bank released in January. “The continued provision of unique design services and products, further mechanisation, and effective branding could help it retain market share. Sri Lanka could also benefit by strengthening its position in non-traditional markets like the Middle East, India and China,” the study also said.

The Children’s Place has pledged to contribute $2 million to the Rana Plaza Donors Trust Fund to compensate the victims of the factory disaster that killed over 1,135 people. The Children’s Place, in a statement on Monday, said it would make a $2-million contribution to help the trust fund meet its goal of raising $30 million for the injured and victims’ families. Rana Plaza Donors Trust Fund is very close to reach its much-needed $30 million, which would be $29.5m after realisation of the Children’s Place fund. According to the coordination committee, the fund already received $27.5m as of April 24. On April 23, Children’s Place – working with International Labour Organisation (ILO) – convened a conference call of major brands and retailers in an attempt to fill the funding gap by the second anniversary of the Rana Plaza disaster, said Clean Clothes Campaign. This call raised over $1 million in donations to the fund and in addition to the donations, Children’s Place contributed another $2 million to the fund, said the Campaign. The Children’s Place is an American specialty retailer of children’s apparel and accessories. “We have been calling on brands to work together to collectively resolve the funding crisis for months, and we welcome the initiative of The Children’s Place in doing so now,” said Sam Maher of the Clean Clothes Campaign. There remains hope that brands and retailers will continue to step up and make additional contributions in order for entirely making up the fund of $30 million, the amount required to provide the survivors and victims’ families as compensation, said Maher. Walmart has for months been delaying any further donation, claiming that the Alliance would instead be making a significant payment, Maher said, adding that with only $2.7 million left, the Alliance is presented with a unique opportunity to finally close the gap by making good on its promise by May Day and there is no excuse for any further delay.” “We have received $27.5 million from donors and need another $2.5m to complete the compensation, Ramesh Chandra Roy, secretary general of IndustriAll Bangladesh Council, and member of the coordination committee, told the Dhaka Tribune. “We are negotiating with Mango, a retailer, for $2m to make full-fledged compensation.” Prime Minister Skeikh Hasina has so far distributed over Tk15.38 crore as compensation to 976 deceased victims’ family while Tk4.10 crore to 38 severely injured victims. The Rana Plaza Coordination Committee also paid Tk76 crore, which is 70% of the compensation to the injured and the family members of deceased and missing workers. On April 24 in 2013, Rana Plaza, which housed five garment factories, a shopping complex at Savar, collapsed, killing 1,135 workers and injuring over 2,500 workers.

Source: https://www.dhakatribune.com/business/2015/apr/30/childrens-place-give-2m-rana-plaza-donors-trust-fund#sthash.ZRcT0nDf.dpuf

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the National Board of Revenue (NBR) to continue and settle down the existing 0.30% tax at source on export for the next five years. The leaders of the apex body have also requested the NBR to exempt the apparel makers from all kind of tax including import-duty, Value Added Tax (VAT) and Advance Income Tax (AIT) on the import of construction materials for the factories to be constructed in Garment Economic Zone. BGMEA President Atiqul Islam came out with a set of recommendations to the NBR for considering in the budget for the fiscal year 2015-16 at a meeting with revenue body held at its headquarters in the capital. NBR Senior Member Farid Uddin chaired the meeting. He also demanded same sort of tax benefits for importing Fire Proof Colour Coating to be used as pre-fabricated building materials. Attending the meeting, Atiqul said: “We’ve introduced a website called ‘fair factory clearing house’ to meet the demand from the buyers following devastating Rana Plaza collapse.” “Buyers representing 220 brands from across the world can now have updated information on 1700 factories under the platform of BGMEA. They can also be informed about any crack or any error in the factories from our website, so no factories excepting the compliant ones can run business in Bangladesh,” he said. Regarding the upcoming budget, the BGMEA President opined that the budget was set to be a challenging one. Demanding special benefits for RMG sector from NBR in this coming budget, he also recommended the NBR to continue income tax at a minimised rate of 10% for the next five years. The other demands from the apparel makers include duty free import of fire preventing and energy saving machinery for a compliant and green industry, withdrawal of authority from ‘Custom Valuation and Internal Audit Commissionerate’ in regard to the inspection of bonded warehouse benefits enjoyed by export oriented apparel factories, finalisation of 3% interest rate on loans against Effluent Treatment Plant construction, etc. In case of VAT, the association proposed total exemption of VAT on the use of gas, water and electricity. Atiqul Islam requested the NBR to exempt the due VAT piled up on the purchase of local products from 2005 to 2012. “We are enjoying VAT exemption on purchase of products from local market since 2013, but now, the NBR is claiming VAT from us for the previous years that we are unable to pay now,” he said. Atiqul asked the NBR to exempt them from VAT on different services including laboratory test charge, consultancy charge, compliance audit charge, legal consultancy charge, CSR-related charges, building construction charge, courier service charge etc. The NBR should allow the apparel exporters to get 2% special cash incentive, instead of current 0.25% on free on board (FOB) prices, opined the BGMEA. In response, NBR member Farid Uddin praised the apparel manufacturers for three reasons-contribution to the country’s foreign currency income, employment generation and women empowerment, and also for branding Bangladesh abroad. He also stressed on a partnership among NBR, Bangladesh Bank, Banking Institutions and businesses to go forward with integrated approach. At the same meeting, the NBR also discussed with the representatives from Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA), Exporters Association of Bangladesh (EAB) and Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association (BGAPMEA). BGAPMEA President Rafez Alam Chowdhury urged the NBR to authorise the association to give Utilisation Permission (UP) to its members. He also noted that NBR should allow the organisations to avail continuous or extension of the bond facilities for the members of BGAPMEA to boost export. BGAPMEA’s other demands include duty-free import of materials for pre-fabricated building construction, incentive package for exporters, allowing each export-oriented factory with duty free import of a delivery van for product distribution, and consideration of whole factory premises as bonded area. Meanwhile, the BKMEA requested NBR to introduce tax at source on cost of making, instead of free on board prices, increase of cash incentive at 8% from existing 5%, duty and VAT free import of fire safety equipments, and duty free import of all retail machinery.

Source: https://www.dhakatribune.com/business/2015/apr/30/bgmea-keeping-03-tax-source#sthash.ZHQwtHyM.dpuf

Garment makers have sought exemption from VAT, duty and advance income tax (AIT) while importing construction materials in order to help establish Garment Palli (garment zone) at Baosia for expediting the setting up process of the zone by encouraging the entrepreneurs. They also sought budgetary facilities on duty, VAT and income tax in different dimensions to cover up the losses that the garment makers incurred due to the recent political turmoil and in the aftermath of Rana Plaza collapse. The garment makers made the call to the government at a pre-budget meeting held ahead of the budget for the next fiscal with the National Board of Revenue (NBR) in the capital on Wednesday. To reach the goal of exporting goods worth $50 billion by the year 2050, there is no alternative to work from under a single platform, said Md Atiqul Islam, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA). He called upon the government to help the entrepreneurs relocate the factory buildings by offering duty exemption on import of construction materials. To help the entrepreneurs of the garment sector make the industry green and safer, the government should offer duty exemption on import of all fire safety equipment and other machinery, Atiqul opined. He also demanded withdrawal of the additional duty under the Duty Evaluation and Internal Examine Commissionerate to simplify the bonded warehouse facilities for the garment makers. Calling upon the government for extending the existing source tax rate which is 0.3 percent now by another five years, the BGMEA leader said after Rana Plaza incident, the country’s garment sector has started fledging its wing with utmost transparency and accountability, Atiqul said. He suggested the government to provide 2 percent cash incentive on FOB which is 0.25 percent now to protect the industry from the present situation. AH Aslam Sunny, First Vice President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Abdus Salam Murshedy, former president of BGMEA and president of Exporters Association of Bangladesh, Rafez Alam Chowdhury, President of Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), were present at the meeting, chaired by Farid Uddin, Member of NBR. Submitting a 33-point demand before the NBR, Aslam Sunny said that there is no alternative to promote the apparel industry to ensure thriving economic growth side by side generating employment for a large number of people. The BKMEA demands included taking income tax from cost of manufacturing of the garment items, providing duty exemption on import of machinery related to fire safety, providing loan at a low interest rate, to help entrepreneurs obtain Leed Certificate of the US Green Building Council by establishing green factory buildings and offering zero percent duty on import of machinery of effluent treatment plant. He also demanded for waiving VAT imposed on import of pre-fabricated building structure. Demanding bond facility in the next budget, Rafez Alam at the meeting said that accessories and packaging sector has been playing a vital role to keep the garment sector vibrant. Reiterating duty exemption on fire safety equipment and pre-fabricated building structure for the apparel and accessories industries, Rafez said it would help the accessories and garment sector grow further with compliance.

Source: https://www.daily-sun.com/print/business/2015/04/30/500688#sthash.eakGQK5K.dpuf

A total of $23.5 million funds has so far been deposited with the Rana Plaza Trust Fund till this month, two years after the worst industrial tragedy, though it was targeted to collect $30 million under the fund, which has slowed down the compensation process. Of the amount, around $14 million have been disbursed among the victims of the Rana Plaza collapse as of April 24 last, according to information. Sources said that 29 retailers whose garment factories were housed at Rana Plaza came forward with other monitoring bodies to help the victims overcome the losses they incurred due to the disaster. Though representatives of the Rana Plaza Trust Fund are hopeful of collecting influx of fund immediately, the labour leaders said delay in contributing to the Trust Fund reflects apathy of the retailers in this regard. In September 2013, representatives from the government, the garment industry, both local and international trade unions and non-governmental organisations came together to form the Rana Plaza Coordination Committee. With the UN agency International Labour Organisation (ILO) acting as a neutral chair, its purpose was to develop a comprehensive and independent process that would deliver support to the victims, their families and dependants in a predictable manner consistent with international labour standards. This process was agreed in late 2013, and established through an ‘arrangement.’ The arrangement has established a claims process, which will be implemented by a range of local organisations and international experts, who will support victims, their families and their dependants to submit claims, assess the level of payments to be provided to each beneficiary, undertake medical assessments and provide follow-up support where needed. These payments will be funded through the Rana Plaza Donors Trust Fund which is open to contributions from any organisation, company or individuals wishing to support the delivery of financial and medical support to the Rana Plaza victims’ families. But it was learnt that many major retailers are yet to contribute to the funds resulting in delay in the compensation process. The retailers those contributed to the fund include Astraea Lesbian Foundation for Justice, Auchan, Benetton Group, Bonmarché, C&A Foundation, Camaïeu, Debenhams, El Corte Inglés, Everlane, G. Güldenpfennig GmbH and H&M Conscious Foundation. The delay of retailers in contributing to the Rana Plaza Trust Fund has slowed down the compensation process, said Sirajul Islam Rony, President of Bangladesh National Garment Workers League. The buyers are obliged to contribute to the fund, but it is their moral obligation to look after the workers of the sector, he opined. We are hopeful of raising the fund to its desired level immediately, said Shahidullah Azim, member of Rana Plaza Trust Fund on behalf of the Bangladesh Garment Manufacturers and Exporters Association. He said that many major retailers will join the platform shortly to help the victims. Mentionable, the compensation process is following the 121 convention of ILO. The amount of funds, committed in written pledges, is yet to be received is US $4.56m.

Source: https://www.daily-sun.com/print/business/2015/04/30/500687

Leaders of Rangpur Chamber of Commerce and Industry (RCCI) have called upon local and foreign entrepreneurs for investing more in Uttara Export Processing Zone (EPZ) by availing the prevailing investment and export friendly atmosphere there, reports BSS. They asked for further increasing and improving facilities already established export-oriented industries to attract more local and foreign investments at the Uttara EPZ situated only 18 kilometres off from Syedpur airport in Nilphamari. They were addressing a seminar on ‘Developing Investment’ organised by the Uttara EPZ authority at its Zone Service Building auditorium on Tuesday for chamber leaders and entrepreneurs of Rangpur division to discuss various issues on establishing industrialists there. SM Akhter Alam Mostaki, general manager of Uttara EPZ, presided over the day-long seminar participated by the leaders of different chambers, industrialists and entrepreneurs from all over Rangpur division. In the beginning, a power point presentation demonstrated achievements in providing better services, creating a congenial environment and successes already achieved by the local and foreign investors through setting up industries at Uttara EPZ. The presentation also narrated the maximum facilities and export-oriented congenial atmosphere those have been insured for the already established industries at Uttara EPZ by local and foreign investors for attracting more investments there. Mostafa Sohrab Chowdhury Titu, Rangpur chamber president; Mosaddek Hossain, Dinajpur chamber president; SM Shafikul Alam Dablu, Nilphamari chamber president and Anwara Ferdousi Poly, Rangpur Women’s chamber addressed the seminar discussing various prospects the Uttara EPZ and related issues. Highlighting the tremendous prospect of Uttara EPZ, the chamber leaders called for supplying natural gas to the EPZ to further inspire the local and foreign investors in setting up industries, there to boost the economy of the region and the country as a whole. They suggested for upgrading Syedpur airport to international standard and Chilahati land customs station, 38 kilometres off from the EPZ, to a full-fledged Land Port to ease export-import activities with the north-eaters States of India, Bhutan and Nepal. They suggested for adding mixed-gage rail lines with Uttara EPZ from Syedpur railway junction to connect it with Mongla Port (586 kilometres off from Uttara EPZ) and Chittagong Port (650 kilometres off from Uttara EPZ) for attracting local and foreign investors. Besides, the chamber leaders called upon the Uttara EPZ authority for arranging similar seminars at all district level chambers of commerce and industry in the Rangpur division with a view to attract the local investors for setting up industries at the Uttara EPZ.

Source: https://www.theindependentbd.com/index.php?option=com_content&view=article&id=256465:chamber-leaders-call-for-investing-at-uttara-epz&catid=110:business-others&Itemid=156

Leaders of export bodies made proposal to continue the 0.30 per cent tax at source against the export of readymade garments (RMG) for the next five years and for considering the tax paid as the final tax return. Leaders of BGMEA), BKMEA, EAB and Bangladesh Garments Accessories and Packaging Manufacturers Association (BGAPMEA) and came up with the proposal at a pre-budget meeting with the officials of the National Board of Revenue (NBR) at its conference room yesterday. They also demanded exemption on VAT on gas, water and electricity in the manufacturing units, which are used for only exporting goods. Farid Uddin, senior member of NBR, presided the meeting. The leaders of the trade bodies submitted their written proposal ahead of the announcement of the upcoming budget. BGMEA President M Atiqul Islam said the RMG sector would have to face challenges in the next few years. “So, the sector needs injection for its survival overcoming the challenges, and that is why continuation of 0.30 per cent tax at source in next five years is required,” he added. The government set 0.30 per cent taxes at source in the current 2014-15 fiscal, which was 0.80 per cent on the 10 per cent profit. The BGMEA president mentioned buyers of 220 brands could monitor all the updates including nominal cracks and faults at buildings of 1700 factories of BGMEA from abroad on www.fairfactories.org, which was developed after the Rana Plaza tragedy. “So, without compliance, nobody can run business,” Atiqul said. He also proposed for continuation of 10 per cent tax for the RMG sector till June 30, 2019. Replying to the leaders of export bodies, NBR Senior Member Farid Uddin said the proposals and suggestions placed by the businessmen would be considered. “NBR will continue to provide necessary policy support to the businesses in the future as it has been doing at present,” he added. Farid also emphasised establishing participatory relation among the regulatory bodies and entrepreneurs.

Source: https://www.theindependentbd.com/index.php?option=com_content&view=article&id=256470:exporters-for-continuation-of-source-tax&catid=108:business-finance&Itemid=152

The country’s apparel makers placed a number of demands Wednesday to the government that include deduction of 0.3 per cent source tax on CM against FoB and 10 per cent income tax till 2019. Their demands also included duty- free import of fire proof colour coating for pre-fabricated building materials and other energy saving equipment like LED bulb and tube light to help ensure a safe and environment-friendly industry. “Exporters are paying 0.30 per cent AIT while it is also mandatory for importing various raw materials. As a result, an exporter is paying AIT several times for a single shipment,” Md Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said at a pre-budget meeting. So the tax at source should be deducted only on CM (cutting and making) instead of FoB as companies open back to back L/C (letter of credit) for importing raw materials worth 70 to 80 per cent of the FoB price, he explained. The National Board of Revenue (NBR) held the pre-budget meeting with the readymade garment, knitwear and accessories and packaging makers to review their proposals for next fiscal year budget. NBR member Md Farid Uddin chaired the meeting held at its office in the city. President of Exporters Association of Bangladesh Abdus Salam Murshedy and BGMEA former vice president Siddiqur Rahman, among others, were present in the meeting. “Some 40 per cent of the garment units are located in shared or rented buildings creating employment opportunities for about 1.4 million workers, ” the BGMEA president said demanding duty -free colour import for pre-fabricated building materials to help them relocate and others to expand their capacity saying buyers would not place orders to those units after 2018. The BGMEA president also demanded continuation of the 0.30 per cent source tax till next five years and 10 per cent income tax till 2019. AH Aslam Sunny, first vice president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said the 5.0 per cent cash incentive on using local yarn/fabric provided by the government is a subsidy to make the sector competitive in the global market. He requested the government not to impose any tax on that cash incentive and return the money realised since fiscal year (FY) 2009-10 to 2012-13 and also increase the cash support to 8.0 per cent.

Source: www.thefinancialexpress-bd.com/2015/04/30/90870

Garment makers yesterday called upon the National Board of Revenue to collect 0.3 percent tax at source on 10 percent of their profits from exports, instead of overall profits.The NBR now collects source tax at 0.3 percent on overall profit on apparel export by an individual company in a year, which was introduced in the current budget, scrapping the previous provision of 0.8 percent tax on 10 percent of profit.Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association, proposed the option at a pre-budget meeting with revenue officials at the NBR office in Dhaka.slam said, although the NBR reduced the source tax to 0.3 percent from 0.8 percent, the revenue office has started collecting the tax on overall profit, which is a major deviation from what they had actually demanded.“We also want removal of value added tax on the local purchase of raw materials, as the option to impose such taxes is not allowed in the current law,” Islam added.He also proposed removing all taxes on the import of materials to construct pre-fabricated factory buildings at the ‘garment village’ and fireproof colour coating.Rafez Alam Chowdhury, president of Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association, proposed authorising the association to issue certificates of ‘utilisation permission’, which is a statement of required materials to manufacture export goods. “We need to build a long-term partnership between the tax office and garment exporters so that we can remove all barriers in business through discussion,” said Farid Uddin, a member of the NBR, while chairing the meeting.Aslam Sunny, acting president of Bangladesh Knitwear Manufacturers and Exporters Association, and Abdus Salam Murshedy, a former BGMEA president, also spoke.

Source: https://www.thedailystar.net/business/garment-exporters-want-revision-rules-tax-source-79826