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Amid the global economic crisis, BGMEA seeks NBR’s backing for the RMG sector

BTJ Desk Report
Amid the global economic crisis, BGMEA seeks NBR's backing for the RMG sector

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the National Board of Revenue (NBR) to provide their support and collaboration to the readymade garment industry in light of the ongoing global economic challenges. During a meeting held on October 10 in Dhaka, BGMEA President Faruque Hassan formally made this request to Md. Nazmul Karim, NBR’s member (Taxes).

The meeting, attended by Munir Hossain, Vice President of FBCCI and a former BGMEA director, primarily focused on addressing the substantial impacts of the global trade dynamics on Bangladesh’s RMG exports. They also discussed potential strategies to overcome the hurdles and challenges faced by the RMG sector. Additionally, the meeting delved into the issues and obstacles related to customs, VAT, and income tax encountered by garment exporters in the country.

President Faruque Hassan underscored that the RMG industry in Bangladesh is currently grappling with a challenging period due to the ongoing global economic uncertainty, mainly stemming from the Russia-Ukraine conflict and high inflation rates. This worldwide economic downturn has resulted in reduced consumer spending on clothing, leading to a decline in garment orders and exports. Furthermore, he highlighted that the evolving demands of the fashion industry now require shorter lead times for product deliveries.

The global economic crisis has already exerted substantial pressure on Bangladesh’s economy and foreign currency reserves, he added. BGMEA President Faruque Hassan emphasized that maintaining the RMG industry’s competitiveness and continued growth would significantly contribute to enhancing the country’s foreign currency reserves.

Photo Courtesy by : Dhaka Tribune


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