Faruque Hassan, President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government to review some of its new budget proposals, including a 10 per cent cash incentive for non-cotton based garment exports.
Hassan said, Bangladesh has a huge opportunity in grabbing the global market for non-cotton based readymade garment (RMG) exports as the demands have been increasing over the years.
He said the world consumption of non-cotton based textile items is 75 per cent and the demand is increasing 3.0-4.0 per cent annually. As per Financial Express, Bangladesh has installed the required machinery for manufacturing non-cotton RMG items while the fabric is also available. The country now needs to be competitive in this segment, Hassan said.
He added that the government’s support to incentivize manmade textile manufacturing and exporting will help increase the industry's competitiveness, which will also help raise the global market share.
He also urged the government to withdraw the 10 per cent tax on cash incentive, increase existing incentive to 5.0 per cent from the existing 4.0 per cent for exports to non-traditional markets and continuation of 0.50 per cent source tax for the next five years.