Interviews
Bangladesh RMG sector welcomes budget
06 Jun '15
2 min read
Leaders of the readymade garments and backward linkages in Bangladesh have hailed the national budget for 2015-16 as "business friendly", but demanded withdrawal of income tax at sources from the sector, the Bangladeshi media has reported.
"As a whole the new budget is business friendly, but we can't recognize it as textile friendly due to the unexpected taxation in the RMG and textile sector," Bangladesh garment manufacturers and exporters association (BGMEA) president Atiqul Islam told reporters in a post budget reaction at a press conference.
He said the finance minister in the budget has proposed tax in sources on the export of RMG and textile at 1 per cent from the 0.30 per cent, which would hinder the normal growth of the sector.
"Our knitwear and woven sectors would witness new risk factors due to the taxation, and we think we can't survive competing with our rival countries by tackling the risk factors," Islam said.
The BGMEA chief made a conditional commitment to the government. "We will generate more employment and take all kinds of initiatives towards attaining the status of middle income country if the tax in sources fixed at 0.30 per cent like previous year," he said
The BGMEA, BKMEA, BTMA and BGAPMEA jointly organized the press conference to draw attention of the prime minister and finance minister so they would eliminate the tax considering all aspects of the industry.
Islam thanked the finance minister for withdrawing the 15 per cent VAT on the export of firefighting equipment, electrical accessories and pre-fabricated building materials, which would help build safe, compliant and risk free RMG factory.
He, however, expressed concern over imposing 5 per cent import duty on firefighting, safe and power efficient, and infrastructural material.
Referring to the prescriptions of Accord, Alliance, ILO and buyers, Atiqul Islam said each factory has to spend Taka 5 crore to develop the working environment and safety at international standard. "Give us policy support, we will give the nation US$ 50 billion export along with generating additional 65 lakh employment in the 50th anniversary of independence," he vowed. (SH)
"As a whole the new budget is business friendly, but we can't recognize it as textile friendly due to the unexpected taxation in the RMG and textile sector," Bangladesh garment manufacturers and exporters association (BGMEA) president Atiqul Islam told reporters in a post budget reaction at a press conference.
He said the finance minister in the budget has proposed tax in sources on the export of RMG and textile at 1 per cent from the 0.30 per cent, which would hinder the normal growth of the sector.
"Our knitwear and woven sectors would witness new risk factors due to the taxation, and we think we can't survive competing with our rival countries by tackling the risk factors," Islam said.
The BGMEA chief made a conditional commitment to the government. "We will generate more employment and take all kinds of initiatives towards attaining the status of middle income country if the tax in sources fixed at 0.30 per cent like previous year," he said
The BGMEA, BKMEA, BTMA and BGAPMEA jointly organized the press conference to draw attention of the prime minister and finance minister so they would eliminate the tax considering all aspects of the industry.
Islam thanked the finance minister for withdrawing the 15 per cent VAT on the export of firefighting equipment, electrical accessories and pre-fabricated building materials, which would help build safe, compliant and risk free RMG factory.
He, however, expressed concern over imposing 5 per cent import duty on firefighting, safe and power efficient, and infrastructural material.
Referring to the prescriptions of Accord, Alliance, ILO and buyers, Atiqul Islam said each factory has to spend Taka 5 crore to develop the working environment and safety at international standard. "Give us policy support, we will give the nation US$ 50 billion export along with generating additional 65 lakh employment in the 50th anniversary of independence," he vowed. (SH)
Fibre2fashion News Desk – India
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