Bangladesh apparel exporters convey budgetary demands

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Bangladesh apparel suppliers recently demanded exemption of value-added tax (VAT) in all types of products purchased from domestic sources for the export-oriented clothing industry within the next budget. This is necessary for making exports extra competitive in the global industry, explained Rubana Huq, president of the Bangladesh Garment Makers and Exporters Association (BGMEA).

The products include sub-contracting, printing, courier products and services, consultancy fees, legal products and services, engineering companies, compliance audits, expenses on corporate social responsibility and the price tag on factory establishment.

She was addressing a pre-budget meeting with the National Board of Revenue.

As well, the federal government should keep the export-oriented apparel factories from the purview of VAT return submission, she added.

Representatives of the BGMEA and the Bangladesh Knitwear Companies and Exporters Association (BKMEA) also urged the federal government to lower the tax at origin to 0.25 % from 0.50 per cent and keep it effective for another five years to remain competitive in the global export marketplaces.

The apparel manufacturers also urged the government to keep carefully the corporate tax unchanged at 12 % and 10 % for the qualified green factory owners in fiscal 2021-22.

“Considering the result of the pandemic in the outfits sector and intended for the greater interest of expenditure and exports, the federal government should keep the corporate tax unchanged and it should be effective for up coming five years,” Huq was quoted as saying simply by Bangla media reports.

The garment exporters also demanded a withdrawal of the 10 per cent income tax on cash incentives.

Meanwhile, the BKMEA demanded zero duty in imported chemicals used in the effluent treatment plant to make sure zero discharge of hazardous chemical compounds (ZDHC) for the betterment of the surroundings.

It also needed duty-no cost import of electricity-efficient products or extra parts such as for example LED lights, tubelights and spare parts for fire safe practices equipment to create factories environment-friendly and safer.

The exporters also urged the federal government to ensure hassle-free of charge release of goods when returned by the global apparel brands due to the pandemic.
Source: https://www.fibre2fashion.com

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