During a post budget press conference in the city last night, BGMEA president Faruque Hassan said the proposed budget for FY 23-24 does not give specific directives for export oriented textile and RMG sector.
He requested the withdrawal of the source tax of 10% on the incentives received by the exporter from the government. He added that the sector is struggling to survive as the export earnings getting low due to lack of orders and global economic crisis.
When finance minister stated that the sector needs to reduce getting cash incentives in preparation for the lifting of such facilities after the least developed country (LDC) graduation in 2026, Faruque Hassan reminded him that US, India and many other developed countries continue to provide cash incentives to their industries. He said, we developed our RMG sector due to cash incentives and this should not be reduced right now. We are also seeking a 10% cash incentives for exporting non-cotton clothes as Bangladesh has huge opportunity in the sector.
Faruque Hassan thanked prime minister for several proposals including reduction of total tax incidence to 15% on container imports, waiver of VAT on waste fabrics and the establishment of a new customs office at the export processing zone.
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