The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged for more tax cuts from the government as the industry has suffered huge losses due to the COVID-19 pandemic. The industry lost exports worth $4 billion in the 2019-20 fiscal year. BGMEA has urged the government to reduce tax at source on readymade garment exports from the existing 0.5 per cent to 0.25 per cent for the next five years and not deduct income tax against this source tax.

Faruque Hassan, President, BGMEA requested the government to keep the corporate tax rate at 10 per cent for green factories and 12 per cent for other factories for the next five years. He also demanded the rate of income tax deduction on incentives be reduced from 10 per cent to 0 per cent. BGMEA further proposed the apparel sector be allowed to repay their incentive loans through 30 installments in three years instead of 18 installments in two years. It has also sought maximum cooperation of the finance ministry for the release of various imported goods and fire extinguishers.

The BGMEA also plans to contribute Tk500 crore to the SME Assistance Fund and take steps to meet the emerging challenges in transitioning from a least developed country (LDC) to a developing one. The apex apparel sector trade body has also sought funds for creating a virtual marketplace, which requires an allocation of Tk100 crore in the next budget. It has also placed several proposals related to the sustainable development of the industry.