BKMEA submits crisis-management package proposal to Bangladesh govt

08 Jun '22

2 min read

Pic: Sk Hasan Ali/Shutterstock

The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) recently submitted a crisis-management package proposal to the government. The proposal includes zero-duty on raw materials and trade deal with potential markets for boosting knit-garment exports during crunch time. It also wants various existing tax rates unchanged for the next five years.

It wants tax at source, corporate tax and value-added tax (VAT) unchanged for next five years to help overcome the impact of COVID-19 and boost the country's exports. It particularly recommends making VAT zero-rated on all goods and services collected locally for exports.

It also seeks a 5-per-cent cash incentive on total investment in establishing new capital machinery aimed at product diversification and achieving competitiveness in goods production.

BKMEA sent the recommendations to the ministry of commerce for forwarding to the National Committee on Export, according to Bangladeshi media reports.

It proposes making two separate divisions for collecting revenue and for revenue policy, and making specific laws and policy for exporting apparel items through the global online export market.

The knitwear association has recommended fixing reasonable tariffs on import of raw materials for the readymade garment industry to encourage more investment and exports.

It seeks zero-rated duty and VAT on imports of necessary machinery and chemicals for establishing and operating effluent treatment plant and wastewater treatment plant.

Fibre2Fashion News Desk (DS)

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