Leaders from prominent associations within Bangladesh's garment industry convened to address pressing issues affecting their sector. The meeting discussed the recent circulars issued by the Bangladesh Bank, particularly concerning the provision of electricity and gas connections to new factories outside designated economic zones or industrial areas. Additionally, banks were directed to mandate clearance certificates from utility providers before granting loans.
Attendees at the meeting included Mohammad Hatem, Executive President, BKMEA, Mohammad Ali Khokon, President, BTMA, Md Monir Hossain, Vice President, FBCCI, and several other key figures.
Expressing deep concern, the leaders highlighted the precarious state of the garment industry amidst ongoing global trade disruptions. They feared that implementing these circulars would further exacerbate the industry's challenges, stifling growth and deterring potential entrepreneurs from establishing new ventures. Notably, ongoing expansions and new factory constructions could face significant setbacks if these measures were enforced hastily.
Urging governmental intervention, the leaders appealed for a five-year exemption for the garment industry from these circulars, emphasising the critical need for uninterrupted power and gas supply.
The meeting also addressed issues pertaining to customs, VAT, and income tax. Business leaders urged the National Board of Revenue (NBR) to streamline processes, making them faster and more efficient to bolster sustainable industry growth. Proposals included reducing the tax at source from 1 per cent to 0.5 per cent to alleviate operational costs and maintain competitiveness, with hopes for favorable consideration in the upcoming budget.
Furthermore, discussions revolved around Bangladesh's transition from a Least Developed Country (LDC) status and strategies to sustain competitiveness post-graduation. Leaders stressed the necessity of policy support to attract increased investment in promising sectors for overall economic prosperity.
