Bangladesh garment accessories sector has demanded 1% cash incentives parallel to what the government has provided to exporters of apparel and other export-oriented industries.
The Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) expressed this as FY 2021-22-budget reaction.
BGAPMEA insisted the govt. to reduce the corporate tax rate of this sector to 12% like the RMG sector, to halve the tax at the source of export, and to remove the existing income tax on the raw materials for export from the local market.
Md Abdul Kader Khan, President, BGAPMEA said that financial incentives have been given to more than 35 products for many years to encourage exports. Garment accessories and packaging industries have not got this benefit in spite of being 100% export-oriented and small to medium scale industries.
Kader Khan demanded a 1% incentive as a deemed exporter.