Bangladesh garment exporters want the 0.3 per cent tax at source on exports of readymade clothing to be retained. Bangladeshi apparels are seen to be losing their competitive edge as the currency has strengthened against the US dollars. In such a situation, exporters feel the one per cent tax at source on total export value will lower competitiveness of the garment industry. So they want the tax at source to be maintained at 0.3 per cent.

They also want withdrawal of one per cent duty on capital machinery import, extension of the tax rebate for apparel sector by five more years, waiver of outstanding VAT on service sector and suspension of bonded warehouse audit. They fear the violence and political unrest will cause the country to miss its export targets. Overseas buyers of Bangladeshi garments are hesitant to place orders.

Bangladesh exported clothes worth $22.9 billion this financial year against the target of $27 billion for the entire year. The export figure is expected to reach $25 billion. Entrepreneurs in the apparel sector have been urged to relocate their industries from the capital to the garment village at Baushia in Munshiganj.