The proposed budget for the upcoming FY24 has no realistic direction as to how the export-oriented sectors will tide over the post-graduation and fourth industrial revolution challenges to enjoy the duty-free market access, claimed top officials of the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA).
On Saturday they expressed their concern as the budget did not spell out any specific instruction about how to mitigate the complexities relating to the dollar crunch, high price of raw materials and opening of letters of credit (LCs).
The trade body said that the budget did not cut the source tax to 0.50% on export proceeds and to 10% on the interest of a company's bank deposit.
The garment accessories and packaging sector is the driving force of all direct export-oriented sectors, especially that producing readymade garment.
The accessories industry could supply required raw materials to the garment industry at a competitive rate and in the shortest possible lead time and even after 2027, it said in a statement.
BGAPMEA acting president Mohammad Belal said: "Although equal benefits for our sector have been mentioned in the national industrial policy, export policy and textile guidelines, they are yet to be offered despite the fact that this industry has helped the RMG sector to be the largest foreign currency earner from the very beginning."
As a result, the local accessories and packaging industry is yet to be in a developed stage to face the post-graduation challenges, he added.
Welcoming the budgetary proposal for providing an incentive to the sector, he urged the government to fix the source tax on export proceeds at 0.50% and continue it for the next five years.
Belal also demanded an equal bonded warehouse facility as given to the RMG sector and an import ban on the accessories and packaging goods that are locally produced.
