Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan has urged the government to give greater priority to the textile and readymade garment industries.
Mentioning the absence of specific directives in the budget speech for the 2023-24 fiscal year, he highlighted the sector's struggle to survive amidst the ongoing global economic crisis, leading to reduced export earnings.
Faruque Hassan made the remarks during a post-budget reaction event organized by BGMEA in the capital city on Friday.
Finance Minister AHM Mustafa Kamal presented the budget of Tk7,61,785 crore in the National Parliament on Thursday.
The BGMEA president pointed out that foreign currency earnings from remittances and exports have declined year-on-year over the past two months, and the country's foreign exchange reserves have decreased by $18 billion in the last 21 months, despite an additional $14.73 billion earned from the export sector during the same period.
He expressed concerns about the negative impact of declining remittances and export earnings on the economy.
The apex body leader said his association had requested a reduction in source tax to 0.5%, but it remained unchanged at 1%.
Faruque Hassan also highlighted the absence of an allocation for cash incentives in the export sector.
He emphasized the role of cash incentives in developing the export sector and advocated for their retention.
Additionally, he sought a 10% cash incentive for non-cotton garment exports, given the significant potential in that sector.
He urged the government to eliminate all VAT-tax for the recycling industry, as it has the potential to generate $5 billion annually.
The BGMEA president called for a 10% tax exemption for cash incentives, a fixed 12% corporate tax rate for subcontracting factories, and a 0.5% source tax for export-oriented industries for at least five years.
The BGMEA president also stressed the need for facilities that support foreign currency earnings, employment, and the survival of businesses in these challenging times.
