Home / Knowledge / News / Textiles / BGMEA seeks revival of 10% reduced income tax facility
BGMEA seeks revival of 10% reduced income tax facility
02
Nov '15
Faced with rising production costs, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has sought the extension of reduced tax rate benefit for the country's apparel makers for the next 10 years, Bangladeshi newspapers have reported.

The BGMEA's request came in a letter to Finance Minister AMA Muhith as the reduced 10 per cent tax rate benefit had expired at the end of the fiscal year 2013-14. The Association's President Siddiqur Rahman met the Finance Minister at the weekend and placed the request along with a written statement explaining the reasons.

Since the garment factory owners are required to pay tax at the regular 35 per cent rate from the FY2014-15, they have urged the government to make the extension with retrospective effect.

In the statement, BGMEA said the RMG sector was going through a hard time due to price cut of their products in the international market, rise of production cost, payment of increased wages to workers and expenditure on achieving compliance requirements.

The BGMEA chief told a newspaper that in order to attract new investment to the country's apparel industry and meet the $50bn export target by 2021, the sector should be granted 10 per cent reduced tax rate benefit for 10 more years.

He said after the Rana Plaza tragedy, the RMG sector have cooperated with the Western retailers' initiatives - Accord on Fire and Building Safety in Bangladesh and Alliance for Bangladesh Worker Safety.

He said the owners had also worked to implement the National Action Plan which to improve safety standards in the factories.

Rahman said factory owners had to spend a lot of money for remediation and retrofitting combined with the devaluation of the euro against the dollar increased cost of production. These matters have spurred the BGMEA to seek policy support so that the apparel makers can recover from the tough situation, Rahman said. (SH)

Fibre2Fashion News Desk - India


Must ReadView All

Courtesy: Pexels

Textiles | On 15th Jul 2018

WCO publishes global standards on e-commerce

The World Customs Organization (WCO) has published the Framework of...

Courtesy: M Dohmen

Textiles | On 15th Jul 2018

Archroma takes remaining minority shares in M Dohmen

Archroma, leader in colour and specialty chemicals towards...

Courtesy: Reebok

Fashion | On 15th Jul 2018

Reebok, CFDA join hands to nurture America's fashion

Global fitness and lifestyle brand Reebok has joined hands with the...

Interviews View All

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Top executives
Textile & apparel bodies

Textile industry would like to see inclusion of cotton yarn under MEIS and ...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Karan Behal

Karan Behal, founder and chief executive of top-selling brand...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search