Bangladesh’s RMG industry wants the reintroduction of the 10 per cent special corporate tax rate and a reduction of tax at source to 0.30 per cent from the existing 0.60 per cent. It also wants a special tax rate for the next five years.

Garment factory owners have included a proposal for duty-free imports of fire equipment, machinery, tube lights, bulbs, fire-proof paint for pre-fabricated building materials and industrial lighting protection equipments. Garment exporters have suggested a five per cent special cash incentive for exports to new markets and two per cent cash support for exports to the European Union for the next three years.

These proposals have been forwarded in the hope they are incorporated in the country’s forthcoming budget. Factory owners say they are investing a huge amount of money in carrying out remediation work and retrofitting according to the prescription of Accord, Alliance and the National Action Plan to ensure workplace safety.

Bangladesh’s currency has appreciated by 8.43 per cent against the dollar. And the cost of doing business, say factory owners, has increased by 12 per cent in recent times due to the wage hike and transportation costs. On the other hand, buyers want a reduction in prices of apparel items.