Interviews
BGMEA demands duty-free import of machinery
07 May '11
2 min read
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has demanded of the government to reduce the import duty on machinery and spare parts and to extend the bonding facility period.
The demands were set forth by a BGMEA team headed by the association President Shafiul Islam Mohiuddin, during a meeting with Dr Nasiruddin Ahmed, Chairman of National Board of Revenue (NBR).
The BGMEA requested the government to allow duty-free import of all sort of spare parts, safety equipments and devices, machinery and other building construction materials that are required for production.
Mohiuddin revealed that, the small and medium sized garment businesses are facing more difficulties as they operate in rented premises, and thus need to pay extra nine percent VAT (Value Added Tax) on rented premises.
He averred that, if the tax imposition on the rented space is withdrawn by the government, it would help the readymade garment (RMG) industry to better contribute to the country's economy.
The VAT rates have already been slashed by the government from earlier 15 to 9 percent pursuant to the requests of the RMG exporters. However, as stated by the BGMEA leaders, their profit margins are going down due to increase in power charges, rise in furnace oil prices and reducing returns on exports.
Besides, BGMEA has also called upon the government to provide zero interest loans to the garment entrepreneurs to construct dormitories for garment workers.
The demands were set forth by a BGMEA team headed by the association President Shafiul Islam Mohiuddin, during a meeting with Dr Nasiruddin Ahmed, Chairman of National Board of Revenue (NBR).
The BGMEA requested the government to allow duty-free import of all sort of spare parts, safety equipments and devices, machinery and other building construction materials that are required for production.
Mohiuddin revealed that, the small and medium sized garment businesses are facing more difficulties as they operate in rented premises, and thus need to pay extra nine percent VAT (Value Added Tax) on rented premises.
He averred that, if the tax imposition on the rented space is withdrawn by the government, it would help the readymade garment (RMG) industry to better contribute to the country's economy.
The VAT rates have already been slashed by the government from earlier 15 to 9 percent pursuant to the requests of the RMG exporters. However, as stated by the BGMEA leaders, their profit margins are going down due to increase in power charges, rise in furnace oil prices and reducing returns on exports.
Besides, BGMEA has also called upon the government to provide zero interest loans to the garment entrepreneurs to construct dormitories for garment workers.
Fibre2fashion News Desk - India
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