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BGMEA seeks revival of 10% reduced income tax facility
02 Nov '15
2 min read
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)
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
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