Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), in a proposed budget reaction expressed frustration as their demands for reducing corporate tax, source tax and providing cash incentive have not been addressed in the proposed budget for fiscal year 2020-21.
BGAPMEA urged the government to provide equal budgetary facilities as proposed for the readymade garment (RMG) sector.
According to BGAPMEA, Accessories and packaging industry contribute 15 to 18 percent of the country’s RMG export. 1,700 small and medium accessories and packaging makers are meeting the requirements for 30 to 35 types of such items needed for the RMG exporters.
Abdul Kader Khan, President, BGAPMEA, said, “Though the export-import, textile and industries policies mentioned about providing equal facilities to both direct and deemed exporters, we never get equal facilities.”
On the proposed budget has reduced corporate tax to 32.5 percent from 35 percent whereas the tax is 10 to 12 percent for readymade garment industry, added Abdul Kader Khan.
Almost all industrial sectors have received government’s stimulus package to offset the negative impact of corona virus outbreak, but we did not get any support, said Kader Khan
There is no announcement of cash incentive in the proposed budget or no assurance for the backward linkage industry of RMG.
Due to corona pandemic situation accessories sector passing bad situation. In this crisis moment, BGAPMEA wants that the government will work to increase social safety net, create employment opportunities and expand financial support.